Is the UK heading for a 'big fat Greek mess'?

Unless firm action is taken to curb rising public debt, a credit ratings downgrade is on the cards this year for the UK. And the consequences won't be pretty.

The UK economy continues to limp along. The good news this week was the PMI index of manufacturing's unexpected jump to a 16-year high. Export orders showed the strongest growth in 14 years. The survey also pointed to the first rise in employment in the sector in two years. The bad news was that in the much larger services sector, the PMI index slipped back to the lowest level since last August. Mortgage approvals also dipped for the first time since December. And a year after quantitative easing began, the money supply and bank lending are barely rising.

What the commentators said

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