Retail sales held up unexpectedly well in recent months and car production rose in November, providing a glimmer of hope that Britain might avoid a new recession. But a sharp drop in factory orders in the Confederation of British Industry's November survey offered a stark reminder of the dangers ahead as the debt crisis in the euro zone, Britain's main trading partner, rages on. Mortgage lenders also predicted more Britons would lose their homes next year. The Office for National Statistics said last Thursday that despite a monthly drop of 0.4% in November, retail sales volumes rose 0.7% over the past three months compared to the three months before, the strongest gain since August 2010. Excluding fuel, retail sales dropped 0.7% on the month, more than analysts had forecast. Car manufacturers, one of the other few bright spots amid the gloom, cranked up production by 8.5% in November compared to last year. The outlook for manufacturers overall is less rosy. The CBI's survey showed that companies' order book balance fell to its lowest level in November in over a year. Prospects for the British economy are poor and growth is expected to stay well below 1% next year. Policymakers have warned the economy may shrink in the final quarter of 2011 as the euro zone crisis hits confidence and exports.