Brits to splash out this Christmas, but money is tight

Thursday, 22 November 2007 12:00

Brits are planning to splash out this Christmas and relegate sorting financial woes to the New Year's resolution list.

Research by Mintel shows a third of Britons say money is tighter this year - but they will still be increase spending.

Retail sales are expected to rise between two and three per cent.

"Nothing is going to come between British shoppers and having a good Christmas this year," said Richard Perks, Mintel director of retail research.

"During 2007 overall spending has slowed down, but our research shows confidence is still remarkably strong."

He went on to explain low unemployment is making people fell secure in their jobs

"This, combined with the fact that the impact of rising interest rates on predominantly fixed rate mortgages will take another year and a half or so to work through, means British consumers are not yet ready to tighten the purse strings," Mr Perks added.

However, an air of caution has started to increase.

A fifth of consumers expect to spend less this Christmas and 46 per cent of shoppers say they are on a budget and will keep it.

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