UK economy shows signs of steadying amid pause in interest rate rises

Modest fall in mortgage costs and rising manufacturer confidence fuel hopes that UK is turning the corner'

• UK house prices rise for third straight month as mortgage rates fall

The UK economy is showing signs of beginning to stabilise from the economic slowdown triggered by soaring inflation and ever-higher interest rates, amid hopes that a peak in borrowing costs has been reached.

Figures on the housing market and manufacturing on Friday showed steadying levels of activity, amid a modest decline in mortgage costs for households and rising confidence among industrial firms.