Threadneedle's Colwell: UK recovery is still a fragile one

The UK economy appears to be in rude health. In May, the Bank of England upgraded its growth forecasts for 2015 to 2.9%, from 2.7%, saying that the economy "has started to head back towards normal". It left its growth prediction for this year unchanged at 3.4%.

The UK economy appears to be in rude health. In May, the Bank of England upgraded its growth forecasts for 2015 to 2.9%, from 2.7%, saying that the economy “has started to head back towards normal”. It left its growth prediction for this year unchanged at 3.4%. But we remain concerned that some of the present improvement in the UK is due to unsustainable government-backed schemes that are designed to ensure the supply of cheap credit. The benefits of these taxpayer-funded schemes are likely to be short term in their nature, with rising consumption related to ever-increasing house pric...