Retailers were dismayed on Thursday by official figures suggesting that spending was actually holding up well despite the economic downturn.

Government statistics stated that spending increased by 2.9 per cent in November compared with the same month last year. The figures were released only a day after another survey suggested Britain's shops were suffering their worst trading in 25 years.

The number of shoppers entering stores has also plummeted by 11 per cent on the first three days of this week, a crucial period in the run-up to Christmas, according to figures from Experian.

Retailers say the official figures are understating the difficulties they face. Their plight was highlighted this week when the administrators to Woolworths effectively put 27,000 workers on notice of redundancy.

The figures, released by the Office for National Statistics, were markedly more optimistic than data from the retail industry's umbrella body. Sales fell by 0.4 per cent last month, or 2.9 per cent allowing for new stores, according to the British Retail Consortium.

November's decline followed a fall of 0.1 per cent in October and brought the first back-to-back monthly declines in the BRC survey's 14-year history. Sector analysts said that the outlook was even bleaker than those figures suggested because the sales had been boosted by food inflation.

The City expected official statistics to show a 0.4 per cent decline in sales for November, the month that saw MFI, the furniture chain, and Woolworths, fall into administration.

But even the ONS statistics displayed the weakest growth in retail sales since 2006. Department stores and general retailers fared badly, recording a 3.6 per cent drop, their sharpest fall since records began 22 years ago. However, internet sales continued their rise, hitting £220 million a week during the month. Online trading now accounts for 3.8 per cent of the total, according to the ONS.

Stephen Robertson, director-general of the British Retail Consortium, said the ONS painted an overly optimistic view of the difficulties faced by retailers and consumers. “Most retailers won't recognise these figures. The idea that both total sales by value and volume went up significantly is hard to explain,” he said.

The BRC's figures were “far more consistent with the reality of weak consumer confidence and rising unemployment”, he added.

The CBI said this week that high street trading was at its worst in at least 25 years. Only 13 per cent of retailers said sales had risen, the lowest since the CBI survey began in 1983.

— Advice on how to seek a change in rental payments from quarterly to a monthly basis has been sent to high street retailers by the BRC.Sir Philip Green, the Bhs owner, has led a campaign to reform the “archaic” quarterly rents system, so that shops would have improved cashflow as the economic situation worsens. It is argued that paying rent monthly helps to ease cashflow, allowing companies to budget more effectively.

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