COLD spring weather kept British consumers out of the shops in May, but lending data suggests that shoppers will be back with a vengeance in the months ahead.

Lending by major British banks rose by £3.915 billion sterling in May, the British Bankers' Association said, with consumers borrowing £382 million more than in April. Mortgage lending by banks and building societies surged in May, a clear sign of a recovery in the beleaguered housing market, the heads of the industries said.

The Building Societies Association (BSA) reported approvals for new home loans rose to £507 million from £445 million in April. BSA director general, Mr Adrian Coles, said the recovery was set to last. "Strong approvals over the last three months are now feeding through and new approvals remain firm, suggesting that the recovery will be sustained over the summer months." He said many of the factors for recovery, such as improving employment and the reduction in taxation, along with firmer house prices, have been in place for some time. And the reduction in interest rates will also help the housing market keep on its upwards trend."

City economists agreed the lending data boded well for more strong consumer spending. "There are definite signs of consumer buoyancy here a strong rise in consumer credit and a strong rise in new mortgages approved," said Mr Alex Garrard, economist at UBS.

The figures come a day after May retail sales data showed a surprise small drop in shop sales in the month, although the Office for National Statistics said unseasonably cold weather in the period was partly to blame for slow sales.

But economists said the bulk of the evidence on the consumer sector painted a picture of strong demand. "The Confederation of British Industry's surveys show retailers' expectations have been running at record highs for six months. And big stores, like John Lewis and Marks & Spencer, are reporting very high sales," said Mr David Hillier, economist at BZW.