Official figures show that British retail sales rose by much more than expected in April, suggesting that consumer spending is holding up despite the recession.
But government borrowing hit a record high for the month of April - the first month of the new tax year - as the shrinking economy hit the public finances.
The Office for National Statistics said retail sales volumes rose 0.9% last month, nearly double analysts' forecasts of a 0.5% gain. In March, sales rose 1.1% on the month. Over a year, sales rose 2.6% in April.
Analysts may still be sceptical about the data following widespread methodological changes to the series. These have led to substantial revisions after criticism that the figures did not tally with other survey evidence.
The ONS retail data showed most sectors, especially department stores, performing well. Non-specialised store sales rose 3.5% on the month, the highest since July 2006.
The ONS also said public sector net borrowing hit £8.468 billion in April, compared with £1.836 billion in the same month a year ago. That was a record for the month of April but roughly in line with expectations.
