Sussex is bucking the national trend as householders throw caution to the wind with a massive spending spree.

Consumer confidence in the South-East is now at its highest level for more than two years, figures released today reveal.

Economic analysts Business Strategies said people felt optimistic about the economy and their household finances for the year ahead.

This is in contrast to much of the country, where experts predict fears of unemployment and an end to interest rate cuts will curb high street spending.

Business Strategy's research arm Consumer Futures expected inflation-adjusted spending in the South East to grow by 4.3 per cent this year, compared with 3.4 per cent for the nation as a whole.

However, the researchers said growth in spending was likely to slow over the following two years.

Dr Neil Blake, Consumer Futures research director, said: "Consumers have been the salvation, not the villains of the UK economy this year.

"While concerns over the two-speed economy have been understandable, manufacturers and the tourist industry would have suffered more - not less - if consumer demand had been weaker than it was in the first six months.

"It would be a grave mistake for the Government or the Bank of England to try to reduce consumer spending now, especially since it is probably about to slow anyway."

The survey also showed that spending on wine was the sector growing fastest this year, rising by 12.4 per cent.

Other areas that have seen sharp increases are life assurance and pension contributions, medical costs, foreign holidays, TV and other forms of recreation.

There were also increases in the volumes of audio-visual equipment, mobile phones, clothes, shoes, and electrical goods sold.