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Christmas shoppers are expected to shrug-off financial fears and spend more money this festive season.

Despite higher interest rates, a slowdown in the housing market and the ongoing global credit crunch, Christmas spending will be around two to three per cent higher than last year, says market analyst Mintel.

It claims shoppers are not likely to address any financial problems until it comes to making their New Year's resolution list, with research by the organisation revealing 32 per of Brits are planning to "splash out" on Christmas – even though their money is tighter this year.

Internet shopping is likely to prove particularly popular, with 38 per cent of consumers planning to log on to the web to purchase festive gifts this year.

Meanwhile almost one in ten (nine per cent) will use the internet to buy most of their presents, Mintel says.

As such, retailers which do not operate transactional websites alongside their stores and catalogue operations could lose out, the organisation warns.

Commenting on the figures, Mintel's director of retail research, Richard Perks, said: "The signs are that nothing is going to come between British shoppers and having a good Christmas this year."

Explaining the possible reasons for the apparent confidence of consumers, he added: "Low unemployment means people feel secure about their jobs and their monthly pay cheques.

"This, combined with the fact the impact of rising interest rates on predominantly fixed rate mortgages will take another year and a half or so to work through, means British consumers are not yet ready to tighten the purse strings."

Nonetheless the research indicates a possible slowdown in consumer spending on the horizon.

It shows the number of shoppers who say they have to stick to a budget has risen to 46 per cent – up from 39 per cent in 2002.

Furthermore the number of consumers who expect to spend less this Christmas, compared to last year, has increased from 18 per cent to 22 per cent over the same period.