If anything consumers appear more confident

Richard Caines, Mintel retail analyst

A survey of more than a thousand adults suggests 35% of consumers expecting to spend more this Christmas than last.

About 7% said they planned to spend "substantially more" this year than last.

A quarter of shoppers, however, were concerned enough about the future economic climate to think that it may have an affect on their Christmas shopping.

A survey from the University of Nottingham, released on Tuesday, said around 40% of families on low incomes were failing to keep up with repayments.

Feelgood factor

Low interest rates, the high value of peoples' houses and relatively low unemployment have all helped make consumers feel more upbeat about parting with their cash this Christmas

Those claiming to spend substantially more are likely to be among the youngest age groups, particularly those in Yorkshire/North East and North West.

"If there are any concerns in the UK about the future economic climate they are no more than was the case last year and if anything consumers appear more confident," said Richard Caines, Retail Analyst.

Overall, the average adult is expected to spend around �318 on gifts for close family and friends this Christmas.

Some of the largest differences are by age group, with amounts expected to be spent ranging from �220 among 16-24 year olds to �450 among the 35-44 age group.

The most popular type of presents this Christmas will be clothing, footwear and jewellery, with eight out of 10 adults planning to buy one of these gifts, Mintel said.

In comparison to last year, the sector which is likely to come under greatest pressure will be toys and games, with 62% of adults planning to buy these as gifts in 2002 compared to 67% in 2001.

Bargained out

Less people are expected to keep some money back to spend in the January sales compared to last year, according to the report.

Only 27% plan to save money for later, compared to 40% last year.

Mintel said the popularity of January sales was under threat because of frequent sales now appearing throughout the year.

There is some comforting news for the last minute shoppers among consumers out there - 40% of consumers admit to usually leaving Christmas shopping to the last minute.