Two of the Government's key monthly economic indicators - unemployment figures and the retail sales index - both fell in the run-up to Christmas.

Unemployment was down in November by 21,000 while the retail index fell 0.4%.

Analysts said this was partly due to interest rate rises and a mild November which meant shoppers put off buying winter clothes.

Dole queues cut

The number of people out of work and claiming benefit in November was down to 1,442,100 - 5.1% of the workforce.

It was the 21st monthly fall in a row and took the seasonally adjusted total - which takes into account job market fluctuations throughout the year - to its lowest level since summer 1980.

Unadjusted unemployment fell by 45,184 to 1,387,649, a jobless rate of 4.9%, according to the Office for National Statistics (ONS).

Dole queues were cut in all regions, with the largest reductions in London, north-east England and Scotland.

Unemployment has fallen by 487,700 over the past year and by 1.54 million since peaking at nearly three million in December 1992.

The ONS said the labour market continued to grow at historically high levels, with employment rising by between 20,000 and 40,000 a month while unemployment has been falling by up to 35,000 a month this year.

Average earnings increased by 4.25% in the year to October, unchanged from the September rate.

Sales match City predictions

The retail sales figures were close to City expectations.

The September to November quarterly figures, regarded as a better guide to trends, showed sales 0.2% higher than in the June to August period.

The figures mean that the volume of retail sales is 4.8% higher than a year ago.

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