Three signs the British economy is recovering nicely

Strong demand for summer clothing pushed up UK retail sales in August, as expectations for employment growth climbed to a 15 year high, according to Britain's biggest business lobby group.

Britain's economy to enjoy 'decent but unspectacular growth' say forecasters

Britain's economy will enjoy "decent but unspectacular growth" with wages rising in real terms for the first time in six years and low inflation allowing the Bank of England to avoid raising interest rates before next year's general election, according to a group of economic forecasters.

UK economic optimism soars, boosting Cameron's political capital

LONDON (Reuters) - Optimism about Britain's economy has reached its highest level since 1997 thanks to an unexpectedly strong recovery, boosting Prime Minister David Cameron's economic credentials ahead of a 2015 election, a poll showed on Thursday.

Germany, Britain lead Europe's nascent economic recovery

BERLIN/LONDON: Germany confirmed on Friday it had enjoyed its fastest rate of economic expansion in more than a year in the second quarter, and Britain revised up its growth to the same rate.

Bank of England's cheap credit scheme to be extended -reports

LONDON (Reuters) - A scheme to get more credit flowing in Britain's stagnant economy will be expanded to include specialist lenders and will run for a year longer than planned, the Sunday Telegraph newspaper reported.

Osborne to stick with austerity, pray for growth

LONDON (Reuters) - Chancellor of the Exchequer George Osborne is set to stick to his guns on austerity in next week's budget, despite increasing calls for a change of course, as he bets that growth will get back on track before an election in 2015.

Bank of England's King says time to review inflation targeting

BELFAST (Reuters) - The Bank of England's inflation-targeting remit needs to be fine-tuned but should not undergo fundamental change, central bank governor Mervyn King said in a wide-ranging speech on Tuesday.

UK unemployment falls as economy looks set to grow

LONDON (Reuters) - The number of Britons on unemployment benefits dropped in August by the largest amount in two years as companies created new jobs, raising hopes that improved prospects will allow consumers to spend more and get the recovery going.

British leader Cameron to shake up his UK gov't

LONDON (AP) — British Prime Minister David Cameron is making the first radical overhaul of his Cabinet since taking office in 2010, amid a stalled economy and after a series of humbling policy reversals.

Manufacturing slowdown dents hopes for recovery

Britain's small and medium sized manufacturers have seen their biggest fall in output since October 2009, in a blow to hopes the sector will help drive economic recovery.

Economy to shrink in 2012: OECD economist

LONDON (Reuters) - Britain's economy looks set to shrink in 2012 after a surprisingly deep slump between April and June, as the euro zone debt crisis and weak domestic demand make a vigorous return to growth unlikely, the OECD's economist for the UK said.

Osborne: Euro zone crisis "killing" UK recovery: report

LONDON (Reuters) - The euro zone debt crisis is "killing off" Britain's fragile economic recovery and European leaders are close to the "moment of truth" after more than two years of uncertainty, British finance minister George Osborne wrote in a newspaper article.

U.K. in recession for 2nd time since 2008

NEW YORK (CNNMoney) -- Britain's economy declined for the second straight quarter, the U.K. government said Wednesday, in a sign that the nation has entered a recession for the second time in four years.

British Chambers of Commerce raises new fears for UK growth

Business lobby group casts doubt over official UK growth estimates but still supports government plans to reduce deficit

Britain's economy will grow more slowly this year than has been forecast in official estimates, according to the British Chambers of Commerce (BCC), due to a weak first quarter and the impact of bank holidays and the royal wedding. Despite the sluggish performance, the lobby group said that it still backed the government's drastic plans to reduce the deficit, but called for more to be done to help businesses take up the slack caused by cutbacks in the public sector.