LONDON (AFX) - UK consumer spending growth has passed its peak, according to Business Strategies' consumer research arm, Consumer Futures. In its latest forecast, Consumer Futures said it expects inflation-adjusted spending in the third quarter to rise by 3.2 pct from a year ago. The figure represents a slackening from the 3.8 pct recorded in the second quarter. The slower pace comes from a combination of factors, it said, citing the end of the interest rate cut cycle and fears of impending rate hikes. Further, a cooling housing market and the impact of job losses will also affect spending, it added. For 2001 as a whole, spending is expected to rise by an inflation adjusted 3.4 pct in volume and 5.3 pct in value before slowing to 2.4 pct and 4.4 pct respectively in 2002. Consumer Futures' research director, Neill Blake said the consumer has so far been the salvation of the UK economy. "While concerns over the two speed economy have been understandable, manufacturers and the tourist industry would have suffered more -- not less -- if consumer demand had been weaker than it was in the first six months, " he said. He called on the Bank of England to hold back from trying to reduce consumer spending now, especially as it is about to slow. "It would be a grave mistake," he added.