Debt-oration of the economy

Economic surveys conceal woes of generation debt | Business | The Guardian: "A feelgood factor has warmed right-wing political debate, with some coalition MPs claiming they have sighted green shoots of recovery.

Surveys of manufacturing and services were upbeat. Two months of positive retail sales added to the impression that Britain was getting back on its feet, and the consumer was leading the charge.

There was evidence during January and February that middle income consumers were refusing to pay down debt and the poorest were turning to payday loan companies in ever bigger numbers. Maybe they were spending the money on the high street. It was possible, though Bank of England lending data pointed in the opposite direction.

Then it happened. A dive in the retail spending figures for February, combined with a retrospective downgrade in the spending figures for January showed that the message from the high street was mangled by the ONS.

It was always wrong. The spending splurge was a mirage and while green shoots of recovery from the consumer side of the economic equation appeared real, they were a trick of the light.

When they were published, the ONS figures for January didn't add up without a huge rise in borrowing."

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