Figures from Ernst & Young show that British firms issued 111 profit warnings in the third quarter of this year and the company has warned that the country will be in a recession by Christmas.
The report, covering July to September, found that businesses in support services, retail and media are suffering the worst.
Andrew Wollaston, a restructuring partner at the
accountancy firm, said: "UK plc is about to enter the perfect storm due to the confluence of the financial credit crunch and economic downturn.
"If we are not already, we are likely to be in a recession by Christmas."
He added that the number of profit warnings would probably rise in the next financial year.
Meanwhile, retail sales have fallen for the sixth month in a row, according to the British Retail Consortium (BRC).
The BRC reported that furniture and clothing sales were worst-hit, with food and drink being the only sector showing improvement as shoppers focused on value ranges.
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