Sales were better than stores “dared hope for” over Christmas, giving retailers the best December growth for eight years, the British Retail Consortium said today.

Last minute shoppers helped like for like sales rise 4.2 per cent and the freezing weather meant demand for winter clothes shot up — putting clothing sales growth at its highest for more than five and a half years.

The BRC said the figures showed confidence had returned among shoppers fed up of the recession. The retail sector turned around a 3.3 per cent drop in comparable sales last December and is the biggest growth in the month since 2001.

Internet sales also improved, with non-food, non-store sales growth rising to 26.5 per cent from 16.9 per cent in November.

Big high street names have posted robust Christmas trading updates. Department store House of Fraser reported a 7.1 per cent rise in like-for-like Christmas sales, following equally positive figures from Next, Sainsbury's and John Lewis.

However, weak comparisons from the last few years helped flatter December's result and it was the only month to see the temporary VAT reduction drop out of the equation. Experts said the rush to buy ahead of the return to 17.5 per cent VAT on 1 January acted to boost the figures.

The BRC warned that high street celebrations could be short, joining Marks & Spencer boss Sir Stuart Rose in cautioning of a tough year ahead.

Stephen Robertson, the BRC's director general, said: “These are stronger figures than we dared hope for. After a surprisingly muted November, this goes well beyond just making up for the sales fall the sector suffered a year ago.

“But with customers now reacquainting themselves with concerns about jobs and tax rises there is a risk that a healthy December may be only a temporary respite on the painful road to recovery.”

Food retailers benefited from shoppers buying foods in premium ranges. Food sales growth was the best since June thanks to indulgent purchases, a trend that has helped the big supermarkets to fight falling food price inflation.

Clothing sales showed their best growth since May 2004 against a decline last December.

Trading in the electricals sector was mixed, with sales of TVs and laptops largely deal-driven in a highly competitive market.

Howard Archer, economist at IHS Global Insight, said strong retail spending in December would “reinforce belief that the economy exited recession with significant expansion in the fourth quarter of 2009”.

But he added: “Further out, the suspicion remains that the upside for consumer spending — and hence overall economic growth — will be limited in 2010.

“While low mortgage interest rates and relatively low inflation are boosting the purchasing power of many consumers, the upside for spending is likely to be limited for some time to come by high and still rising unemployment, low earnings growth and consumers' need/desire to improve their finances.”