There are worries that consumers will be more cautious while Christmas shopping this year. However, despite rising interest rates and increasing personal debt, it seems that some retailers can expect their vital Christmas trading period to be busier than ever.

A survey by Deloitte indicates that average spending on presents will be up 22% this year, with a total bill of £17 billion expected. Spending by the 16-24 age group looks set to show the greatest rate of increase, particularly on the most popular products. The estimated average spend is £378 per person. However, this does vary across the country from £311 in the South West to £443 in Wales. The survey also suggests that many people will begin their shopping earlier this year. 35% of shoppers intend to start in November.

However, although retailers selling gifts such as jewellery, clothes and MP3 players are forecast to do well, the prospect for supermarkets is not so encouraging. Food sales are likely to remain at previous levels and consumers may well choose to support smaller high street shops rather than large supermarkets.

In contrast to the increase in gift sales, we are also likely to spend less on socialising and leisure activities. In this area a fall of 16% is forecast, with the average person spending £121.

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