For expensive tastes, this golden belt is retailing at �20,000

Clothes, jewellery and MP3 players are set to prove the most popular items, particularly among 16-24 year olds.

But supermarkets could struggle as food sales are likely to be flat while consumers are prepared to rein in their budgets for leisure and socialising.

Christmas remains the most important time of the year for most retailers.

'Bumper year'

Many are concerned that rising interest rates and consumer debt levels will make people more cautious this year.

But Deloitte said gift retailers were set for a rewarding festive season with overall spending forecast to rise by �2.2bn, or 7%, to �16.9bn.

Average spending per person is forecast to increase to �378, with spending rising fastest among the 16-24 age group.

AVERAGE GIFT SPENDING Wales: �443 North East: �440 Scotland: �403 North West: �393 South East: �364 London: �343 Midlands: �340 Yorkshire: �330 South West: �311 Source: Deloitte: 2006 estimate Top toys for Christmas

"Gift retailers can look forward to a bumper year," said Tarlok Teji, Deloitte's head of UK retail.

At the same time, Deloitte expects people to rein in their leisure spending - with average outlay on socialising falling 16% to �121.

Food sales are expected to be flat while more consumers are expected to show a preference for smaller High Street stores over supermarkets.

Welsh consumers are set to 'flash the most cash' on gifts, with anticipated spending per person of �443.

Consumers in the South West will keep their belts a little tighter, as they are expected to spend �311 on average - the lowest of any UK region.

More people than ever are expected to begin shopping in November, with 35% of shoppers surveyed set to venture out this month.