Hopes for an economic revival suffered a sharp setback yesterday as activity in the vital manufacturing industry slumped to levels last seen during the recession, mortgage approvals crashed to a record low for April and global growth indicators stumbled. MORE

Britain is among the world’s gloomiest nations, with just one in ten people rating the economy as ‘good’, according to a poll. The survey of 24 of the world’s biggest economies placed Britain among the most negative countries, ranking alongside Italy and just above France and debt-laden Spain. MORE

The pressure mounted on Greece last night after Moody’s cut its credit rating by three notches to Caa1 from B1 and maintained its negative outlook. The ratings agency cited a growing risk that the European periphery economy would fail to stabilise its debt position without a restructuring. MORE

Britain’s banks were by far the largest buyers of government debt in the last six months, as demand from other UK investors and foreign buyers fell away. Banks bought 91% of the £39.8bn of net issuance of new gilts with purchases totalling £36.1bn, compared to the £11.4bn of UK debt bought in the preceding six months. MORE