Consumer 2010 Holiday Spending Outlook: Santa, Can You Spare a Dime?

Nearly one-third of U.S. adults plan to cut holiday spending, more than twice those planning to increase it

ARMONK, N.Y.--(EON: Enhanced Online News)--Americans may be spending less money at the mall and more of it in the kitchen this holiday season, according to a recent national online omnibus survey among U.S. adults conducted by VeraQuest. Nearly one-third (30%) plan to decrease holiday spending this year and only 14% plan to spend more. With just over half (56%) planning to spend about the same, it could be a slow holiday season from Thanksgiving through New Year’s Day for a variety of sectors, including retail, food service and travel.

Four times as many (41%) plan to spend less on holiday-specific travel than those who plan an increase (11%), with 30% travelling to friends or family outside their local area, and 10% planning holiday vacations.

Home cooking may increase. One-third of those who spend money for the holidays (34%) plan to boost spending on home-prepared food, compared to 12% who plan a decrease. Spending on dine-in and takeout restaurant food may decline for 40%, with 14% planning an increase. At some point 46% of all U.S. adults plan to entertain guests at home; 42% plan to visit someone else’s home in their local area.

To cover holiday spending, 60% plan to use cash already on hand or regular income, 43% saving or setting aside funds, and 15% by retailer layaways. Some (39%) plan to borrow, most of these (36%) using credit cards or personal lines of credit. Others may work extra hours or take an additional job (17% planning this) or use a bonus from their employer (13%).

Planned spending decisions may vary by gender (45% of men will consider borrowing vs. 33% of women), age (26% of adults 18-29 plan to increase, vs. 11% of those 40-49 and 8% of those 50 and older), family situation (20% of those with children aged 0-6 years plan to increase) and geography (Northeastern holiday travelers are much more likely than those elsewhere to travel by train – 20% vs. 8% or less – or bus – 16% vs. 6% or less. Westerners are much more likely than those in other regions to travel by air – 47% vs. 34% in the East, 27% in the South and 21% in the Midwest).

Methodology

The survey sampled 2,518 U.S. adults aged 18 years and older online within the United States between September 27-29, 2010. Results were weighted as needed to reflect the total U.S. adult population aged 18 years and older. Respondents were randomly selected from an online panel to be generally proportional of the age, sex, region, race/ethnicity, income and education strata of the U.S., based on U.S. Census proportions. Data have been weighted to reflect the composition of the U.S. adult population. Estimated sampling error for the sample of 2,518 respondents is +/- 2% at a 95% confidence level. These statements conform to principles of disclosure of the National Council on Public Polls.

About VeraQuest

VeraQuest provides online omnibus research, with a level of consulting and analysis associated with custom research, combined with online timeliness, flexibility and cost-effectiveness. It delivers quality research across a range of business sectors through direct support and through its full-service alliance partners.

NOTE: This is a condensed version. The full release is at www.veraquestresearch.com.