Spenders return to the High Street

CONSUMERS are spending again after pausing for breath at the start of the year. Latest figures show that visitor numbers to 50 of Britain's biggest shopping centres picked up sharply in the past fortnight.

The week beginning 14 January saw a 3.7% fall in visitors from the week before, and the following week saw a 0.1% increase, according to shopper monitoring company Foot-Fall. But the last two weeks have seen week-on-week rises of 2.5% and 2.8%.

The Bank of England said on Wednesday in its Inflation Report that there was little evidence of moderation in consumer spending. The British Retail Consortium this week reported that sales increased at an annual rate of 8.3% in January.

Nevertheless, the Bank still expects the pace of spending growth to ease. If it fails to do so, the monetary policy committee may raise interest rates to keep a lid on inflation. Sterling was steady at $1.4280. The euro was also little changed at 87.10 US cents, or 61p.