Retail sales volume increased by a strong 1.1% in July, though the 12-month rise was a modest 1.3%. Even so, sales in the latest three months rose by 1.7% compared with the previous three months. Food sales were weak, down 0.9% on the three-month comparison, while non-food sales were up by a strong 4.2%. Confidence may be weakening but consumers are still spending. More here.

The news on public borrowing was also encouraging, with net borrowing in July of £3.8 billion, down from £6.1 billion a year earlier. There's a long way to go but it looks as though borrowing is on a downward trend, as the Office for Budget Responsibility has predicted. The question is whether it will prove to be too pessimistic for 2010-11. More here on the figures.