![image: [ The BRC warn that a rise in interest rates could result in a downturn for the economy ]](/olmedia/45000/images/_47008_Copy_of_shopping.jpg)
The report is regarded as the best overview of the retail sector.
It shows that, as suspected, many people left their Christmas shopping to the very last minute.
The figures suggest that people are still being careful with their money and the BRC advises that there is no need for another rise in interest rates.
Describing December as 'a month of two halves', the report states that for the first three weeks spending in the shops was very slow. In the last few days before Christmas, however, the report show that business picked up strongly, a trend that continued into the first few days of the January sales.
But over the month as a whole, growth was still slower than during the summer, when building society windfalls helped launch a brief mini-boom.
According to the report, shoppers are being careful with their money, looking for bargains in the sales and only spending at the last minute.
A real inflationary boom looks as remote a prospect as ever, and the retailers warn that if the Bank of England puts interest rates up again, then the economy could go into a sharp downturn.
But much depends on a number of economic indicators being released over the next couple of weeks.
Shop sales bounce despite fears of Christmas crisis
(08 Jan 98 | Business)
Sales bonanza for shoppers
(29 Dec 97 | Business)
The BBC is not responsible for the content of external internet sites.
EU ban on American beef 'illegal'
Factory sales 'to protect jobs'
Indonesia signs IMF deal
Judge rejects Microsoft challenge over 'biased' adviser
Record numbers 'up up and away'
British unions demand better deal for part-time workers
Red light for privatised trains
Decision due on £40m van package
Millennium bug could cripple government
(From Sci/Tech)
Dixons customers cash in on sales