If this happens, consumer spending power will be further diminished, but consumers and businesses may take some solace from the Bank of England's inflation report this week. This suggested that inflation will continue to fall and, therefore, gives the Bank some scope to cut rates again, possibly as soon as December.

Glisten, the Harewood-based manufacturer and provider of snack foods and confectionery, posted a positive trading update at its AGM. Chairman Jeremy Hamer said that revenue for the first 18 weeks of the current financial year was 15 per cent ahead of last year's figures and 5 per cent on an adjusted like-for like-basis. It was also confirmed that the group is experiencing difficult trading conditions, and as a result, a greater emphasis has been placed on "value" own-brand products in order to generate new business.

White Young Green, the international consultant that provides engineering, environmental, planning and management services to the public and private sectors, announced that specific areas of the business are experiencing reduced demand. As a result, it expects first-half profits to be lower than previous expectations.

The company, based in Headingley, Leeds, confirmed that it had already responded to the challenging environment by rationalising the workforce and implementing a £5m cost-saving measure.

Fenner, the global engineer specialising in reinforced polymer technology, released its preliminary results for the year ended August 31. The Hessle-based company, which employs more than 3,000 people worldwide, reported a 15 per cent increase in revenue, with pre-tax profits rising 8 per cent, to £36.3m. These encouraging figures were as result of strong organic and acquisitive growth throughout the financial year.

Northern Foods reported that, despite a 6.8 per cent increase in revenue for the six-month period to September 27, pre-tax profits declined 16 per cent, to £16.9m, compared with £20.1m achieved in the corresponding period last year.

These figures were marginally ahead of consensus forecast and as a result the shares rallied in early trading. The group also confirmed that it was to maintain its interim dividend at 1.55p.

Landscape and paving products group Marshalls announced that group revenue for the
10 months ended October 31 came in at £339m, a fall of 3.5 per cent over the same period last year.

The company confirmed that, since September, the overall outlook for 2009 has deteriorated, with signs of weakening demand in the commercial and industrial markets being apparent through projects being delayed or cancelled.