Pain of September 11 is receding

BRITAIN'S recovery from the economic trauma that followed September 11 has been highlighted by figures showing a record fall in firms warning of lower profits.

Only 91 profit warnings were reported by stock market-listed companies in the first three months of this year - nearly 40% fewer than the 149 alerts issued during the troubled last quarter of 2001.

Accountancy firm Ernst & Young, which compiled the figures, said the drop, the biggest on record, was due partly to firms having brought forward bad news in the wake of September 11.

Disappointing sales were the most common reason for warnings, followed by difficult trading conditions and contract delays.

The support services sector posted the highest number of warnings, followed by media and photography businesses and software and computer services firms.