Britain’s budget deficit fell to its lowest level since 2008 in May, providing some evidence that Brexit is failing to have the expected negative effect on the economy.

Wednesday’s figures from the Office for National Statistics show that the UK borrowed £6.7 billion last month, down from £7 billion in May 2016. It also constituted a significant drop from April’s £9.4 billion deficit.

VAT receipts provided a boost for the government during the month, rising by 4.3 percent to £11.2bn in May. This is the highest May figure on record.

PMG’s chief economist, Yael Selfin, commented:

“UK deficit fell in May, but after a long period of gradual improvements, expected headwinds will put renewed pressure on public finances.”