It expects consumers to wait until January to look at their finances, even though almost one in three said money is tighter following interest rate rises, the credit crunch and the slowing housing market.

Mintel predicts a 2-3% increase in spending over the festive period compared to 2006. Low unemployment and the fact rising interest rates will take time to filter through to people on fixed rate mortgages mean consumers are still confident, Ananova reported.