UK retail sales rise much more than expected in April

British retail sales rose much more than expected in April with most sectors doing well, official data showed on Thursday, in a sign that consumer spending is still holding up in the face of economic 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 has battered the public finances.

The Office for National Statistics said retail sales volumes rose 0.9 percent last month, nearly double analysts' forecasts of a 0.5 percent gain. In March, sales rose 1.1 percent on the month.

On the year, sales rose 2.6 percent in April after a 0.9 percent gain in March.

Analysts may still be sceptical about the data following widespread methodological changes to the series that has led to substantial revisions after criticism that the figures did not tally with other survey evidence.

The ONS said public sector net borrowing hit 8.468 billion pounds in April, compared with 1.836 billion pounds in the same month a year ago.

That was a record for the month of April but roughly in line with expectations.

The public sector net cash requirement came in at 5.151 billion pounds, also an April record and versus a surplus of 2.884 billion pounds in the same month last year.