News on the demand side of the economy was relatively good, retail sales rising by 0.4% in October for a 3.4% rise on a year earlier. Sales volume in the latest three months was up by 1.1%. Clothing sales appear to have been particularly strong in October. Household goods stores saw a 3.8% rise over the latest three months, partly reflecting the continued upturn in housing. Bank of England figures showed mortgage approvals up from 56,000 to 61,000 - almost to the level normally consistent with stable prices. More on the retail sales here.

The public finances were marginally disappointing, with net borrowing of £11.4 billion in October, compared with £0.1 billion a year earlier, and a current budget deficit of £7.7 billion, compared with a £2.2 billion surplus in October 2008. Though the figures were a touch disappointing, £86.9 billion of borrowing for the first seven months of the fiscal year does not obviously suggest a need for an upward revision of the Treasury's £175 billion forecast for the full year, particularly with VAT set to rise in the new year. More details here.