| Small firms have been depositing "record" amounts of money into their business accounts to prepare for the economic slowdown, according to Lloyds TSB.
Lloyds TSB's bi-annual survey of business conditions showed that smaller companies with sales of under £15 million showed that they were depositing more money despite showing less profit.
"We are taking record levels of deposits from businesses," stated John Maltby, managing director at Lloyds TSB commercial.
"Maybe they are cutting back on investment spending or maybe employment spend. They are looking forward and seeing lower profits so in the short term they are being careful about their businesses today."
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