The economy received a much needed boost today after official figures showed increases in both retail sales and mortgage lending.

Figures from the Office for National Statistics (ONS) revealed retail sales volumes are growing at their fastest annual rate since May last year.

October's sales were 0.4% ahead of an upwardly-revised September figure and 3.4% ahead of the same month last year — the biggest year-on-year rise since May 2008 at the beginning of the recession.

Sales volumes for clothing and footwear stores was 0.7% higher than a year ago.

Annual growth in non-food retailing reached 3.5% compared with 1.6% across food stores.

However, the biggest year-on-year increase (15.8%) ultimately came from non-store retailing and repair.

Mortgage lending also rose by 5% during October as the market continued to recover from its traditional summer dip.

A total of £13.5bn was advanced during the month, up from £12.9bn in September, but still 27% below the figure for October last year, according to the Council of Mortgage Lenders.

The group said the 5% rise during October was in line with increases seen for that month during the past decade.