The UK ecomony will need further stimulus, according to retail recruiters.

This week,commenting on the inflation figures for August, published by the ONS, David Kern, chief economist at the British Chambers of Commerce (BCC), said that although the figures were slightly higher than expected, CPI inflation fell further below the Bank of England’s 2% target, and the RPI measure remains firmly in negative territory.

“The figures do not alter the basic fact that signs of recovery remain fragile, and the main policy priority is to avoid a set back,” said Kern.

And retail recruiters agree. Grant Morris, director at Elite Associates, told Recruiter: “This was a massive crash and not a typical recession. The banks have made it more complicated to borrow money - I can’t believe they are lending more. If you look at your average small business, it looks as if it is coming good but they should not jump the gun and shoot them down.”

Dawn Redman, managing director at The Retail Recruitment Company, adds: “I think any company will welcome government funding.

“The smaller retailers are struggling. They are treading water. They recognise they have gone through the hard times and they are coming through the other end. I think retailers that have come through the last few months are surviving.”