CHRISTMAS spending in the North-west is expected to rise this year -- despite consumers and retailers across the country being far less confident about the economy.

The seventh Deloitte & Touche Annual Christmas retail survey reveals that predicted consumer spending in the region is up by 15 per cent on last year, compared with a national rise of just 1.5 per cent. According to the survey, people in the North-west will be the second highest regional spenders this year, with an average expected spend of £625 (national average: £568).

In the country as a whole, nearly half (41 per cent) of consumers expect the economic climate to deteriorate, against 34 per cent last year.

Likewise, 77 per cent of retailers expect sales to increase, even though 47 per cent believe the economy is getting worse, compared to just seven per cent in 2000.

Sharon Fraser, the partner in charge of consumer business at Deloitte &

Touche in Manchester, said: "Consumer spending has been propping up the UK

economy and retailers have had a good year, with sales growth up by eight per cent on

the previous year.

While December growth will be much more modest, Christmas is a huge time for retailers and will still make up the majority of some retailers' annual sales."

Of those retailers surveyed, those in the North West were amongst the most

optimistic about the Christmas sales this year, along with retailers in the North East and Wales.

Consumers in the North-west also spend more than any other region on socialising, at £132, and they spend an average of £152 on clothes.