CONSUMER spending on the high street is likely to continue growing during the coming months, but holiday spending on credit cards may fall, according to new research.

People expect to spend an average of £904 on their credit cards during the three months to the end of September, the third quarter in a row credit card spending has increased, according to Morgan Stanley.

The rise is made up of an expected increase in spending on DIY, clothes, food, presents and buying cinema, theatre and concert tickets on the Internet.

The biggest increase is expected to come from home improvements, with people anticipating spending £117 on DIY, more than twice the £52 they spent during the first quarter of the year.

Compared with the first three months of the year, people also expect to spend 11 per cent more on food at £183, five per cent more on clothes at £60, 12 per cent more on presents at £42, and 50 per cent more on online tickets at £28.

But at the same time the amount people expect to spend on holiday on their credit cards has fallen by 21 per cent compared with the same period last year, to £187.