According to the latest data released, the total retail sales and mortgage lending have improved in the UK during the month of May indicating a gradual recovery in the economy.

According to the Office for National Statistics (ONS), the total mortgage lending reached its highest level in five years due to strong housing market and retail sales rose above inflation level indicating improved consumer spending in the country. Data showed that retail sales rose by 3.1 per cent between May 2012 and May 2013.

On the other hand, the total mortgage lending rose 17 per cent to £14.7 billion compared to the same month of the previous year, according to the data from the Council of Mortgage Lenders (CML). Experts say that the level of lending is still lower that its peak in housing market in 2007 but is at par with that in October 2008. The housing market has been recovering gradually with storng demand in the south of England.

The growth in the two key indicators shows that the UK economy is showing signs of recovery in recent months and may be able to continue its stable growth in the coming quarters.