Consumer confidence is faltering anew, which does not bode well for spending in the near term at least.

The MPC still has to see conclusive sustained evidence that 2006 pay settlements are remaining contained.

The data were firmer overall than expected,

The latest data - including the improvement in manufacturing activity and current strength of the housing market - has increased the odds that the eventual next move in interest rates will be up.

If this is confirmed, it will reinforce our suspicion that the December performance was inflated by many consumers opening their wallets to treat their families and themselves at Christmas having held back their spending over much of 2005.

This increased housing market activity has clearly led to some recent firming in house prices, and there is undeniably a risk that prices could move sharply higher over the coming months.