Majority of U.S. Consumers Plan to Spend More this Holiday Season

About 72 percent of U.S. customers plan to spend about the same, more or substantially more on gifts and other holiday-related expenditures this year, compared to 2006. On average, respondents said they will spend $1,116 this season on gifts, entertaining, travel and decorations.

According to a recent survey conducted by the International Council of Shopping Centers, at the top of shoppers’ list this year is apparel, cited by 69 percent of respondents, followed by music CDs and DVDs (62 percent) and gift cards (61 percent). Jewelry was cited by 38 percent of respondents, coming in behind toys and games (56 percent), cash (51 percent), and books and magazines (both 42 percent).

"This year, the retail industry planned for a more difficult holiday season than in recent years,” said ICSC VP, chief economist and director of research, Michael P. Niemira. “But the silver-lining for consumers and retailers continues to be the strength in personal income growth, which should buoy spending prospects though at a slower pace than last year."

"However, it is clear from this holiday spending survey that the consumer will be looking for value and lower-income households will be very cautious in their spending," he added.

About half of the shoppers surveyed expect to spend about the same on gifts and other holiday-related expenditures this year, while 19 percent anticipate spending more or substantially more than they did during the 2006 holiday season.

However, slightly more than a quarter of respondents (27 percent) plan to spend less or substantially less than last year.