Troubles surrounding the eurozone could harm the UK's economic recovery, according to one expert, which would impact badly on contractors.

Michael Baxter, editor of InvestmentandBusinessNews.co.uk, says that the UK economy's best chance of growth is through exports and investment.

However, Britain's reluctance to transfer from sterling currency to the euro could hamper trading efforts, he claims.

"Average wages are not rising as fast as inflation, government spending is falling [and] household disposable income is probably going to fall next year. It's a given that growth can only come from exports and investments," he said.

This comes after news published by Barclays Business that over half of small businesses are expecting an increase in profits in 2011, indicating an improvement in the economic recovery.

It was also found that manufacturing, transport , communication and financial services sectors are looking to lead the way.