An overview:

Pessimistic forecasts for consumer expenditure for Christmas 2005 proved to be over-egged. Although retail demand in some sectors, notably home-related categories such as DIY and furniture, stalled during 2005, the outturn for all retail categories over the December period was positive and ahead of the previous year.

The cut in interest rates in August 2005 appears to have been enough to prevent a full-scale downturn in spending and no further cuts in interest rates are anticipated in the short term. No doubt some retailers would like to see more stimulation in the economy, especially as unemployment figures are rising, but the MPC’s management of interest rates appears to be delivering growth at manageable rates.

Mintel’s research in this report shows who spent most and which consumers diverged from their spending plans the most. Additional research highlights which types of gifts were most popular and focuses on consumer behaviour and attitudes towards gift buying at Christmastime, including the timing of Christmas shopping, take-up of pre-Christmas promotions and use of the Internet.