Shop Till You Drop A Distant Memory

One of the nation's major banks has stated that even with consumers confidence most people are not going to go crazy doing their Christmas shopping.

Last week's monthly Westpac - Melbourne institute consumer sentiment survey has shown that 14.2 per cent of respondents intend to spend more on gifts than they did last Christmas.

The survey found that while confidence fell 2.5 per cent in November, due to rising interest rates, it remained 38.3 per cent higher than a year ago with optimists still clearly outweighing pessimists.

Further results of the survey showed that most consumers intended to spend the same as last year or reduce spending this year compared to last year.

The reason consumers were going to spend less is partially due to the fact that there are no cash handouts this year from the government.

About 40 per cent of consumers are planning to spend more than $500 on gifts this year, while a quarter expected to spend $300 to $500 and just over 30 per cent plan to spend less than $300.

On average households plan to spend approximately $317 on gifts in 2009, pointing to a total Christmas spending of $2.5 billion.

Published on November 11-th, 2009 in Financial Planning
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.