January 2012 saw a sharp monthly increase of 0.9% in retail spending compared with December, according to data from the Office for National Statistics (ONS).

This figure has eased government fears of a double-dip recession, after economists had expected a 0.4% fall in retail sales volumes following the December increase caused by pre-Christmas discounting.

The increase was attributed to a rise in internet shopping and in sales of household goods, despite the strain on incomes caused by rising unemployment and high inflation.

Kate Davies, head of UK retail at the ONS, said, "All sectors are experiencing some growth–the household goods sector has risen in particular.

"The most prominent driver behind this growth comes from internet and mail-order sales, but also from food stores and clothing stores”, said Ms Davies.

Figures from the ONS showed that internet sales now account for about 12% of total sales, up from 9% in January last year.

However, it seems that booksellers and electrical stores have been hit hardest, facing the most competition from online retailers.