People preferred to entertain at home rather than celebrate Christmas and the New Year in catering establishments, driven by the dire global economic climate to be more diligent with their money.

Vince Farrugia, the director general of the Chamber of Small and Medium Sized Enterprises - GRTU, said the shift was evident because big supermarkets reported an increase in sales.

Mr Farrugia was asked to comment on the Christmas shopping survey among retailers, half of whom said they had done as well as last year.

This contrasted with another GRTU survey conducted among businesses in the leisure and entertainment sector, which reported a 30 to 70 per cent drop in business over the festive season. It also contrasted with another survey conducted in November when retailers had predicted a bad Christmas.

Mr Farrugia said a substantial number of food and drink outlets reported an increase in sales because people entertained at home this festive season. It was evident that people were careful with how they spent their money because everyone knew what was happening in the international scenario.

"People have to learn to be cautious and are being careful with their money, especially in this tight period. The water and electricity rates have shocked them and no one knows how much they will be paying for their consumption," he said.

The GRTU survey, conducted among 100 retail outlets, revealed that 50 per cent reported the same level of business as last year when the global economic situation was very different to what it is today.

In addition, 10 per cent said their business had improved by between five and 10 per cent, while 20 per cent had registered an increase of up to five per cent. On the other hand, 10 per cent of retailers said their level of business this Christmas dropped by between 20 and 40 per cent, while five per cent said it decreased by between five and 10 per cent.

With regard to whether they had made any special offers to incentivise sales, 75 per cent of respondents said they did and 45 per cent said the offers had improved their sales. Half the respondents said they felt a lack of consumer confidence and this had adversely affected their sales and 35 per cent blamed the global financial crisis.