ANY visitors to these shores who ventured into high streets or shopping centres at the weekend will have wondered whether Britain has escaped the credit crunch.

There were certainly enough people beginning their Christmas shopping in earnest to suggest the economic crisis might be over.

The reality, of course, is very different.

The Christmas rush has started considerably later than normal. And retailers have been forced into substantial price reductions to entice shoppers back to the high street.

With just two weekends to go until Christmas there should be no surprise that consumers are spending.

There are doubts, however, about the level of spending at a time when families are watching the pennies and the internet spends are increasing.

This time of year is always going to be good for retailers. But there remains a real fear that spending levels will be considerably down on previous years and that a sharp post- Christmas slowdown will add to the economic gloom in the new year.

We are already seeing the impact on the real economy of the financial sector meltdown earlier in the year with many job losses announced every day and the dole queue likely to stretch beyond two million by the end of the month.

There is every indication that next year the situation will get worse before it gets better.

With plenty of gloom and doom to come retailers need to make the most of their few weeks in the sun.