Britain is undergoing the wrong sort of recovery

Britain's economic recovery may be gaining momentum, but its foundations look shaky.

The British economy grew by 0.8% in the third quarter of 2013, the fastest quarterly rate since the spring of 2010. All of the major sectors of the economy contributed, with manufacturing and construction growing faster than services (which comprise 78% of the economy).

In addition, mortgage approvals hit a five-year high and the Ernst & Young Item Club predicted that household borrowing would expand this year for the first time since the credit crunch.

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