Managers and business leaders in the south east are fearful about their prospects in 2009, according to a new report.

The survey by the Chartered Management Institute shows business leaders are concerned about rising business costs, low levels of credit, the impact of employee disputes and low skill levels.

Asked specifically about business prospects for their organisations, 30 per cent in the region said they are ‘pessimistic’ about 2009.

Those who are ‘uncertain’ about what next year will bring has risen to 18 per cent, up from eight per cent in 2007.

Business confidence in the South East is being eroded by the economic climate and the knock-on effect of cash-flow problems, the survey reveals.

Fifty per cent say that rising energy costs will have a negative impact on their business next year, while 42 per cent say that the availability of credit will create problems.

Some also focus on the cost of redundancies with 35 per cent expressing concerns over ‘employment disputes’ and 42 per cent worried about the impact of labour shortages.

Respondents in the region also remain concerned that efforts to kick-start the economy may stall, with 88 per cent suggesting consumer spending will plummet despite the recent drop in interest rates.

Seventy-nine per cent believe that household debt will increase over the next 12 months and 49 per cent say rising levels of personal debt will hit business in the New Year.

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, says: "No one should be surprised at this level of uncertainty."