Faltering retail sales bounced back last month to rise at twice the pace expected by the City, boosted by a surge in shopping over the internet which rose at its fastest pace in more than a year.

The upbeat figures eased fears over the threat of a severe downturn in consumer spending. But retailers still face a tense climax to the crucial Christmas trading season this weekend amid signs that shopper numbers over much of the past week are well down on levels at the same time last year.

The more bullish than expected official retail data released yesterday showed the volume of goods sold last month jumped by 0.4 per cent, after stagnating in October, leaving sales 4.4 per cent higher than a year earlier. The relatively buoyant trading performance was boosted by strong sales at food stores, where volumes rose by 0.4 per cent, and over the internet, while sales at non-food stores as a whole fell by 0.1 per cent.

The official category that covers web retailing, non-store retailing and repair, showed sales up 5.9percent last month, the biggest jump since August 2006. Analysts said this could be a sign that high street retail groups complaining of poor demand may simply be losing market share.

High street stores are pinning hopes for decent Christmas trading on a last-minute dash to the shops by consumers this weekend after data from FootFall, the research firm owned by Experian, showed shopper numbers were poor in the past week. On Tuesday, numbers were said to be down by 6 per cent on the same time last year, and on Wednesday by nearly 9 per cent.

But industry observers said stores may be helped by Christmas Eve falling on a Monday, when shops can open for longer compared with the shorter trading hours last year when Christmas Eve fell on a Sunday.

Fears that a respectable trading outcome for Christmas may be a “last gasp” for the British consumer were fuelled, however, by a further slump in consumer confidence yesterday. The December index of sentiment from GfK/NOP fell to its lowest for 12 years, since before Labour came to power, in a drop blamed on anxieties over falling house prices and a worsening economic outlook. The survey also showed consumers more reluctant to make big-ticket purchases, such as televisions, than at any time since 1991, during the last recession.

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