US recession cannot be ruled out

The prospect of another US recession cannot be ruled out, according to a London Business School expert.

Richard Portes, professor of economics at the School, explained to CNBC that a double-dip recession could also be on the cards for the UK, as a result of the recent turbulence in the world's financial markets.

Cuts made by the UK Government to try and reduce the country's budget deficit might have been made too early and by too great an amount, Professor Portes also indicated.

Turning his attention to the eurozone, he added: "Germany is getting soft now, and France is not looking very good, and of course the problems of the peripheral countries are substantial."

Demand is proving to be a cause of concern for the expert with regards to the US economy, he said.

As to where the demand is going to come from, Professor Portes added: “Not from consumption, as households are uncertain and paying off debt; not exports, in a slowing world economy; not investment, with weak demand and excess capacity.”