Tesco chief Terry Leahy ignores gloom to declare recession over

The recession is over for British shoppers despite ongoing fears over the state of the economy, the chief executive of Tesco declared today.

Sir Terry Leahy, head of the country's biggest supermarket chain, predicted "slow and steady growth" in retail sales after a strong Christmas.

It was a far more optimistic assessment than many of his peers, including Marks & Spencer, which has warned there might not be any growth in sales this year.

Sir Terry said: "Christmas was very strong for the industry. I don't think it needs to be maintained at quite that rate, but what I would say is that the consumer has come out of recession, and I'm confident that will build."

Many retailers and economists fear that steps to reduce the Government's debts could hit consumer spending later this year and plunge Britain back into recession.

Howard Archer, chief UK economist at IHS Global Insight, said: "The economy still faces a major challenge to develop significant, sustainable recovery."

Every little bit helps: Sir Terry Leahy has told of "slow and steady growth"