THE UK is on the brink of a double-dip recession – but Liverpool firms are showing resilience in sales growth.

A quarterly economic survey from the British Chambers of Commerce (BCC) reveals a deteriorating economy with “concerning signs of stagnation in the domestic economy” and worsening export balances for both the manufacturing and service sectors.

BCC director general John Longworth warns: “We can avoid a recession, but this relies on the Government making some tough policy choices.” BCC chief economist David Kern added: “Our growth forecasts in September will likely be revised downwards for both 2011 and 2012.”

However, figures from Liverpool Chamber of Commerce suggest many businesses are taking action to adapt to the economic reality.

Chamber director Brian McCann, who also runs Vanguard Corporate Finance, said: “The majority of companies are still achieving at least some sales growth, which hopefully suggests that we will avoid a double dip recession.”

A growing number of firms are confident of improving profitability and, for the first time since 2007 a majority of manufacturers reported an improvement in cash flow over the quarter.

There are also signs the private sector is taking up some of the slack in the jobs markets created by public sector cuts.

Gerard Lane, strategist with stockbroker Shore Capital added: “I am struck by the overall resilience, especially in domestic orders and sales, and Liverpool appears to be outdoing the rest of the country in overseas sales.”