WASHINGTON-Consumer spending this holiday season could be about the same as last year, according to the fifth annual survey by CUNA and the Consumer Federation of America released last week. This year's survey, which covers holiday spending plans and concerns over debt, for the first time looked into why consumers expect to spend more or less during the holidays. Most plan to spend about the same as last year (50%) or somewhat less (20%), the survey found. However, the number responding that they will spend about the same was down from 2000 through 2002 and the same as 2003, whereas the number spending somewhat less generally trended upward. CUNA Chief Economist Bill Hampel said experience has shown over the last four holiday seasons that, in the end, consumers have actually ended up spending more and we would have to wait and see if that particular holiday tradition continued this year. Those who admitted they do plan on spending more primarily say they have more people to give to (36%) or their economic situation has improved (30%). Consumers planning to spend less were split, 25% each, between lesser economic situations and more expenses to pay for this year unrelated to the holidays. But, fewer consumers said they were very concerned about paying off credit card balances from holiday spending (11%) than in 2000 (21%). The percentage of consumers that are very unconcerned has yo-yoed from 36% in 2000, 50% in 2002, down to 41% this year. The `don't know' category, which includes those who won't use credit cards for holiday purchases or won't spend, jumped from 2% in 2003 to 15% in 2004 In addition, the number of consumers very concerned about making monthly debt payments (excluding the mortgage) was down to 19% for 2004 from 28% last year. As has been the case in the past with this survey, most respondents said if they received an unexpected windfall of $5,000, they would pay down some debt (43%) down from 2003 (46%) but up from 2002 (40%). Nearly the same amount, 41%, said they would add it to savings or investments. Eleven percent said they would spend it, which is the lowest in the five-year history of the survey. Hampel and CFA Executive Director Stephen Brobeck hosted the press conference, held at the National Press Club in Washington, D.C. unveiling the results. The event drew many from mainstream media, including CNN, NBC (T.V. and radio), ABC (T.V. and radio), C-SPAM (T.V. and radio), The Washington Post, and news services like Reuters, Bloomberg, and Scripps Howard. -

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