Canadian consumers continue sending mixed messages about their spending this holiday shopping season
The latest survey by RBC Royal Bank suggests the majority (55%) plan to keep their holiday spending flat this year. Nearly a third (31%) say they will spend less on holiday expenses this year, and 18% say they are not in a position to give any gifts this year.
Those that do plan to look for presents for friends and family are planning to spend almost $100 less this year, according to the survey. Canadians plan to spend $624 on gifts, on average, this year, down from last year’s average of $728.
Overall, Canadians plan to spend an average $1,137 during the holidays on everything from gifts and decorations to entertaining and travel. This is about 7% below last year’s average holiday spend.
While the majority plans to fund their spending from savings, 21% plan to use their credit cards. About 20% said they were not sure how they would pay for their holiday cheer this year.
Ernst & Young had previously predicted that consumers’ wallets will “open slightly more widely” this year than last (See "Cautiously optimistic consumers to boost holiday sales this year: E&Y " – BIV Business Today, November 1).