Must a recession be gloomy? It is too easy to concentrate on the negative aspects of economic slowdown without appreciating the opportunities they offer.

This is the time to be countercyclical. When other companies cut prices because sales are falling, the bold business should consider buying. In particular, recessions are a good time for capital spending: building work will be cheap, machinery discounted and vehicle fleets offered on terms designed to clear stocks. And when finance is tight elsewhere in the economy, many desperate companies will nevertheless be tempted to extend credit simply to gain turnover.

In theory, the slowdown should reduce the inflation that is contributing to the reduced economic growth but some prices will tumble and everything is negotiable in this cycle of the economy. Big-ticket items offer the greatest scope for bargains.

And an environment of business closures and failures makes it easier for all companies to cut costs, not only in seeking better terms for suppliers of goods but in terms of labour rates, rents and other costs.

And recession – or as close as we come to it – is a good time for expansion by acquisition. With shares down, there are stockmarket bargains too. Some fundamentally sound businesses will see their shares plunge because of over-reaction to events in their sector.

The business world will divide into those companies that can gain from these pressures and those that become a victim of them. The trick is to be bold.

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