Financial Forecasts Predict Expensive Christmas

14/11/2007

Experts are predicting Christmas party shoppers will spend a total of £80m this year. Money will be spent on presents, food, decorations and Christmas party travel. The average consumer is expected to spend a staggering £1300 on gifts alone, despite the well-publicised credit crunch.

Nick Gladding who writes about consumer spending in the Verdict Report says: “Although there is good reason [for shoppers] to cut back this year, we don’t think that will happen. Real take-home pay – the overriding determinant of purchasing power – has been broadly flat over recent months and the impact of pay rises has been eroded by higher energy bills and mortgage costs. People will be spending as usual and in some cases even more. Sometimes adversity prompts people to spend rather than save.”

Big ticket items expected to be popular for Christmas party gifts and holiday presents this year include flat screen TVs, jewelry, clothes and video game consoles such as the PlayStation3.

Retail sales leading up to the Christmas party and holiday season have slowed to their lowest level for almost a year last month. The British Retail Consortium revealed sales in Britain rose by just one per cent in October - the weakest growth since November 2006.