"But while modest, single-digit gains may sound good to retailers, they don't signal a real spending boom."

Mr Lamont, who is on holiday in Italy, is banking on a spending boom to boost the economy.

Thus, a major improvement in the supply of housing at lower prices would likely trigger a spending boom.

Low inflation touched off a spending boom and a surge in factory production, cutting unemployment.

But there is a more ominous side to the spending boom.

But a year ago, we went through one of the greatest spending booms in technology that we may know in 100 years.

While the spending boom has been slowing, it shows no signs of petering out.

The pressure is considerable: if Indonesia does not fortify the spending boom by attracting investment, the recovery could end.

Many European companies reined themselves in after the spending boom of the late 1990's, but not all of them did so.

LEAD: Britain's spending boom appears to be slowing, based on the latest Government figures.