THE CHIEF executive of Fife Chamber of Commerce has warned no business sectors will escape the credit crunch and has predicted it will take up to four years to restore balance.

Alan Russell identified the construction and tourism industries as being the region’s worst affected, while holding hope for some manufacturers to continue making a good export trade.

He said, “We are not into a recession yet but it looks to be heading that way and all sectors are going to suffer.

“Housebuilders are struggling having already experienced a huge downturn in demand for new homes, with the whole construction industry suffering just now due to increased costs and high fuel prices.

“One local estate agent has reported dropping from 15 sales per week down to two, that is a huge drop.”

While warning that tough times may be ahead for the nation, Mr Russell said that Scottish business may not be as badly affected as the rest of the UK.

“There are some positive signs for manufacturers in certain areas, whose export trade seems to be picking up, but these tend to be blips rather than the trend,” he said.

“Effectively everybody is having to trim the cloth and there are all sorts of factors coming into play.

“It could take up to four years for the cycle to bring us back to where we were a year ago and a lot can happen in that time.

“We need to talk business up rather than predicting doom and gloom.”

Chairman of the Fife Federation of Small Businesses, David Chalmers has also warned of an “economic slowdown” and is calling for businesses to adapt to changing times.

“The message over all sectors has to be for a lot more innovation in finding other ways to attract business and create turnover,” he said.

He added, “There is no point in businesses losing money because their prices are too high. They need to become a more attractive option.”