Britain's public sector finances swung back into the red last month, official data showed today, although the shortfall was smaller than economists had expected.
Separate data also showed Britons' appetite for home loans remained undiminished in May.
The Office for National Statistics reported a public sector net cash requirement of 2.64 billion pounds for May, after a surplus of nearly three billion pounds the month before. The average forecast had been for a deficit of 3.6 billion.
For the first two months of the financial year there was a cash surplus of 342 million pounds, down from 1.67 billion in the same period a year earlier.
On the government's preferred accruals-based measure, public sector net borrowing rose to three billion pounds last month. For the year so far there was also a three billion shortfall, roughly double that of last year.
The British Bankers' Association said mortgage lending surged to 5.25 billion pounds in May from 4.6 billion pounds in April.
The figures had no impact on financial markets which were dominated by a sinking dollar and stock market jitters.
The public sector finance figures revealed that Labour government plans to boost spending on public services are bearing fruit.