Christmas shoppers are becoming more demanding

The survey is predicting a 2% increase in average spending, despite the impact of rising interest rates.

Consumers are expected to spend �614 ($1,163) on gifts, food, drink and socialising, compared to �602 in 2003.

But regional variations do emerge with people in Scotland and London saying they are planning to spend less.

Deloitte's 10th annual Christmas survey looks at the spending habits and underlying moods of consumers and retailers ahead of the festive season.

"One clear message this year is that consumers are in control," said Sharon Fraser, consumer business partner at Deloitte.

"People increasingly seem to know what they want, they're prepared to research the best deal and they have little loyalty to retailers who don't provide the magic combination of convenience, good customer service and excellent price."

Spending hangover

Ms Fraser describes the increasing diversification of supermarkets into non-food lines as a "wake-up call" for High Street retailers.

"Customers put convenience as their number one priority when it comes to choosing where they shop," she added.

A bumper Christmas may leave consumers with an almighty hangover Roger Bootle, Deloitte

The survey found 18% of consumers intend to pay for their purchases using credit or store cards, a 2% fall from last year.

About 32% of the 1,000 people surveyed said they will buy gifts online, with a further 40% using the internet as a tool for comparing prices or doing research.

The Deloitte survey comes in the wake of a poll by bank Abbey which found Christmas shoppers are preparing to tighten their purse strings.

Roger Bootle, Deloitte's economic adviser, says a good Christmas for retailers is unlikely to alter an overall slowdown in consumer spending.

"Given that the household debt burden is already historically high and that the housing market slowdown has yet to find its full force, a bumper Christmas may leave consumers with an almighty hangover," he added.