WASHINGTON -- Consumers will spend more money on holiday gifts this year, but will still be cautious when opening up their wallets, according to survey released today by CUNA and the Consumer Federation of America.
This year, 43% of respondents said they plan to reduce holiday spending, compared with 55% last year. By contrast, during the eight years before 2008, that number never exceeded 35%.
"The public is not in the mood to rush out and spend," CUNA Chief Economist Bill Hampel said at a news conference.
He said that based on the survey data and other factors, holiday spending will likely increase about 4%. Last year, consumers spent 3.5% less than in the previous year.
The survey found that fewer people are concerned about meeting their debt obligations, in part because consumers are taking out less debt.
This year, 42% of respondents said they were concerned about meeting all debt payments, compared with 48% last year. And 24% said they were concerned about meeting credit card payments, compared with 28% last year.
Hampel said credit unions could see an increase in the use of their credit cards this holiday season, because some of the larger credit card issuers have been raising rates and dropping customers at a faster pace as a result of recently enacted legislation to overhaul credit card rules.
The organizations surveyed more than 1,000 people by telephone from Nov. 6-9.
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