Fed: Third of Australians to cut back Xmas spending
11 Dec 2008 1:39 AM
SYDNEY, Dec 11 AAP - More than a third of Australians will cut back on their Christmas spending as the country's economic woes start to bite, a new survey shows.
The Leading Edge Spend Index has found that 35 per cent of the 1,505 people surveyed would reduce their Yuletide spending this year.
The financial crisis was having a big impact on shoppers, the survey found, with even the most affluent saying they would be more frugal.
"The past year has been financially volatile for many Australians, and our research shows that both K-Mart and Gucci belts are being tightened this Christmas," said Phil Bonanno, Director or Retail at The Leading Edge.
The more affluent of those tightening their belts would cut back on their credit purchases "significantly", he said.
"Their biggest cutbacks will include alcohol, specialty foods, skin care products and cosmetics."
For middle income earners, spending on travel, alcohol and entertainment would be curtailed, the survey found.
Those on low incomes said spending on loved ones' presents would be less than last year.
"This group with the lowest incomes are hurting because their income is less, or their access to credit has been reduced," Mr Bonanno said.
"They're going to cut back significantly on presents for friends and family this Christmas as well as other Yuletide fare."
Regardless of the economic gloom, Australians are still giving generously to charities this Christmas, one community group says.
Our Community says its online giving centre had received more than $163,000 in donations this November, up 30 per cent on the same time last year.
The giving centre allows people to donate to their charity of choice, from of list of 1,300 causes.
