Shoppers 'upbeat' for Christmas

Christmas spending is a vital barometer of the economy

British shoppers are set to shrug off concerns about the global economy and deliver a timely boost to the High Street at Christmas, research suggests.

Total retail spending will be 7% higher this Christmas, say business analysts Deloitte - with average expenditure per person at £706, up from £662 last year.

Online sales are set to continue rising fast while popular items will include games consoles and music players.

Deloitte said there was "little evidence" of growing consumer caution.

'Job security'

It warned that the current global financial instability - triggered by the slump in the US housing market - could affect confidence in the coming weeks.

But overall, Deloitte painted a positive picture of the High Street's likely fortunes over the crucial festive period.

The general sentiment is robust Richard Lloyd-Owen, Deloitte

It said its research suggested that consumers had not been persuaded to spend less by general economic concerns or the recent financial crisis at Northern Rock.

"With confidence in the labour market people feel secure in their jobs and the general sentiment is robust," said Richard Lloyd-Owen, Deloitte's head of consumer business.

"Early indicators suggest concerns about bruised financial markets and consumer confidence are nothing more than concerns."

More and more shoppers will be turning to the internet to buy goods this year, Deloitte suggested.

Its research concluded 66% of consumers will research or buy goods online this Christmas, compared to 51% last year.