Britain's dominant services sector expanded at the fastest pace in 10 months in January and firms grew much more optimistic, a survey showed last Friday, crowning a raft of data last week that raised hopes the economy may avoid recession.

Retail sales rebounded strongly in December as shops slashed prices to lure in pre-Christmas shoppers, providing a rare note of relief after a grim 2011, official data showed last Friday.

The Euro Zone's economy deepened its downturn at the end of 2011 as retail sales fell and sentiment soured, but the first improvement in the business climate in 10 months offered hope that an expected recession may be mild.

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

Britain's manufacturing sector shrank for a second successive month in November and at its fastest pace since June 2009 as output and orders fell on weak global demand, a survey showed last Thursday, fuelling fears the country faces another recession

Unemployment hit its highest in 15 years and the number of young people out of work soared to a record of more than 1 million, adding to pressure on the government to do more to support a faltering economy

Greek Prime Minister George Papandreou sealed a deal with the opposition on a crisis coalition to approve an international bailout, but details remain thin despite an EU ultimatum for Athens to get serious about tackling its huge problems

Sales of laptops and video games gave a surprise lift to retail sales in September, supporting hopes that the economy posted at least some growth in the third quarter, without changing an overall dire outlook

The outlook for the economy is weakening so quickly that the Bank of England signalled it was ready to pump in more money, potentially as soon as October

Factory gate inflation proved sticky in August, holding at July's upwardly revised reading of 6.1%, the highest annual rate since October 2008, despite a sharp fall in input prices, official data showed last Friday