FEW of us can have missed the signs of economic gloom gathering on the horizon.

The weekly shop costs more as food prices continue to soar. Petrol costs the earth, and gas and electricity prices have also increased sharply. Meanwhile, the housing market has slowed, the pound is beginning to fall, and the Northern Rock crisis is still unresolved.

Here in York, the city council is looking to make yet more cuts in services to plug a £1 million gap in its budget. And Next has decided not to build a new store at Clifton Moor.

Even the most optimistic among us could be forgiven for thinking the time has come to tighten our belts.

All is far from doom and gloom here in York, however. Next may have decided against opening a fifth store in the city - but as we reported last week, York's retail sector is still healthy, with other major chains opening new stores at Monks Cross and Clifton Moor.

Unemployment in the city is still very low, and with healthy financial, science and tourism sectors, the York economy is sound.

We may all find life harder for a while. But, like York financial adviser Stuart Matheson, we at The Press remain essentially optimistic.

There will be some difficult times ahead, Mr Matheson said. "It's almost like being at a party where you've been over-indulging. Is the party about to be over or are we just about to be asked to turn the music down a bit? Personally, I think we will have a soft landing."

We couldn't have put it better ourselves.