THE UK's economic difficulties have been laid bare with revelations of sharp falls in mortgage lending, house prices and consumer confidence, and a forecast from the Organisation for Economic Co-operation and Development (OECD) of a return to recession this quarter.

Adding to the woes, data from the Office for National Statistics showed UK productivity fell 0.5% in the fourth quarter of 2011 in terms of output per worker.

On a more positive note, ONS figures showed service sector output grew by a solid but unspectacular 0.2% in January.

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