Shoppers "holding off" Christmas shopping
Many consumers are delaying buying Christmas presents in the hope of picking up a bargain, it has been suggested.
Andy Clarke, chairman of the Confederation of British Industry (CBI), said a number of stores have already brought forward their sales and are discounting their products in moves to entice people into the shops.
He added consumers are continuing to be frugal in their spending habits.
"It seems many are holding off doing their Christmas shopping in the hope of bagging a bargain," Mr Clarke continued.
The CBI chairman said it is still too early to determine whether the recent cuts in VAT - which now stands at 15 per cent rather than 17.5 per cent - and the base rate of interest will help to draw consumers and their credit cards back into shops.
VAT is set to remain at 15 per cent until January 1st 2010, when it will move back to its previous level.
Written by Max Jennings ©
