Traders in York today said they feared a miserable Christmas, with the ringing of Christmas tills distinctly subdued.

Chairman of the York & North Yorkshire Chamber of Commerce's Retail Committee Adam Sinclair said: "Discussions we've had with retailers reveal that Christmas trade is very tough so far and below market expectations.

"A combination of factors have led to a drop in confidence, owing to unnecessary interest rate increases, and the Stock Market downturn, coupled with the vast expansion of retail space locally and nationwide has not pulled in anticipated increased business trade.

"Consequently, interest rates must be reduced later this week to boost seasonal trading. If not, given the European situation, we will have an over-valued sterling if we're not careful.

"However, the biggest problem is many traders are starting their sales before Christmas, and the public are waiting to do their Yuletide shopping at the last minute."

Nevertheless, Mr Sinclair is optimistic of Christmas tills ringing eventually.

In Malton and Norton, shopkeepers say they are confident they will win back customers from out-of-town shopping complexes near York.

Chamber of Trade vice president Ian Beecham admitted some shoppers had been deserting the towns in favour of Monks Cross and the McArthur Glen Designer Outlet, near York.

"We are still managing to keep things ticking over here.

"Our trade picks up nearer Christmas when people shop locally to buy last minute things," he said.

"The situation here is part of a much bigger trend. People are switching to out-of-town shopping and that includes at Christmas time too."

Nationally, Christmas spending in the High Street will be the lowest for 20 years, experts are predicting.

Some of Britain's biggest retailers are reporting that the outlook is as gloomy as it was during the Winter of Discontent under James Callaghan's Government.City experts are forecasting another round of disappointing economic figures this week, adding to the heavy pressure on the Bank of England to cut interest rates.

And high street sales figures, to be published tomorrow, are expected to show little sign of any Christmas cheer with the most depressing November sales figures for three years.

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