Economists warned last night that retailers may still be in for a tough Christmas, despite more upbeat projections about the health of the UK economy.

The comments came after the department store(Store Fixture) John Lewis said sales last week rose by 1.8% on last year to £144.5m, though the week-on-week comparison dipped by 1.7%.

Howard Archer, chief economist at IHS Global Insight, said: "John Lewis reported reasonable but unspectacular sales figures, which maintains uncertainty as to just how good a Christmas this will be for retailers(Store Fixture). Consequently, a number of retailers may feel under increasing pressure to engage in discounting and promotions over the coming days".

The subdued response to the figures was mirrored by retail analyst Nick Bubb, who tweeted: "Take out online sales and [John Lewis] were down 5%".

By reporting weekly sales, John Lewis gives analysts an insight into how Christmas trading is going, although the department store(Store Fixture) has consistently performed better than rivals, while its customers are typically less affected by squeezes on incomes.

The figures were released as Barclaycard said consumer spending was up 3% in November, while a business "optimism index" compiled by accounts BDO is at a 43-month high.