The report by the British Chamber of Commerce that British firms are on the brink of recession can be confirmed with businesses in the capital already "downsizing"or already stating they are in a period of economic slow down.
The London Daily News spoke with several business owners in London to find out the various trends taking place:
"I have never seen it like this its been very sluggish, very few bookings and people are just not spending money at restaurants", John David a restauranteur in north London.
Areas that have been particularly hit in London are the property services sector with estates agents bearing the brunt of the slow down, plant hire companies, building merchants all claiming they are experiencing a massive slow down in trade.
Other areas of the capital that are feeling the slow down are in retail where companies like B&Q, Homebase and furniture companies are all reporting a drop in trade and custom.
However there are exceptions with London's theatres reporting a rise in attendance last year seeing more than 13 million attendances. The annual Box Office Data Report compiled by the Society of London Theatre indicated that the 2007 figures are 10 per cent increase on 2006 attendances.
And in areas of the West End trade is still relatively brisk, according to Mayfair jeweller Yacoub Elias "the Arabs, and Indians, Russians are still buying items from us and we are still very busy".
London has experienced slow downs in the past in its economy, and has bounced back stronger and more robust, this time however the signs show that the recession will be a gradual period of decline hitting property and services sectors especially hard.
