The OECD's "leading indicator" for the UK – a signal about how the economy might progress over the next six months – fell for the sixth month in a row, and at an increased rate in June with the suggestion that the economy will continue to flatline until next spring.
The Bank of England is due to reveal its latest forecasts for inflation and growth tomorrow. It is expected to follow the Office for Budget Responsibility in admitting that its projections have not been borne out by reality.
The rout began in Asia: the main stock index fell almost 4 per cent in South Korea and more than 2 per cent in Japan. European markets opened later and fell too, with Germany down 3 per cent and France 2.5 per cent.
However, the European Central Bank's policy of buying Spanish and Italian government bonds to take the cost to Madrid and Rome of financing their public sectors back to manageable proportions seems to be working.
In contrast to their damning assessment of US political gridlock, S&P's officials had kind words to say about the UK and France's AAA ratings. Mr Beers said he expected the UK Coalition to hold together until the next election and to implement its austerity plans with only minimal changes. The agency moved its outlook on the UK's AAA rating from negative back to stable last October.
