Consumers say they'll spend significantly less this Christmas season, according to the ninth annual holiday survey by the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA).

Each year from 2003 to 2007, between 30 and 35 percent of consumers told surveyers they planned to cut back their holiday spending. This year, 55 percent said they'd spend somewhat less, with 27 percent saying they plan to spend "much less than last year."
 
"Consumers are expressing an unusually strong desire to tighten their belts this holiday spending season,” said CUNA Chief Economist Bill Hampel.  “More say they plan to cut back their spending this year than at any time in the nine years we have been doing this survey." 

One factor contributing to financial anxiety is concern about meeting monthly debt
payments.  In response to the question -- "In general, how concerned or unconcerned would you say you are about meeting your monthly payments on all types of debt?" -- a record 48 percent said they were "concerned," with 23 percent indicating that they were "very concerned." In 2007, only 40 percent said they were concerned.

Those most likely to express concern about debt were African-Americans (70%), young adults aged 18-24 (66%) and those with modest incomes of $25,000-$35,000 (64%).

Women and families with children were most likely to anticipate cutbacks.  Sixty-two
percent of women, but only 48 percent of men, said they'd spend less.  Sixty-one percent of households with children, but only 51 percent of households without them,
indicated they were planning to reduce spending.  
 
A vast majority of respondents said financial anxiety would drive their spending this year. Thirty-six percent cited economic uncertainty, 22 percent said they have less money, 12 percent said they wanted to save or reduce debt, 10.5 percent cited higher prices and 9 percent said they have less income.  
 
“The financial crisis and sustained economic downturn the nation has been experiencing are taking their toll on consumers,” Hampel explained.  “People are worried about their finances, job loss, and what the future will hold. Amid such uncertainty, they are reacting by reining in their spending plans."

The survey was conducted November 6-9 among more than 1,000 representative
adult Americans.  Its margin of error is plus or minus three percentage points. 

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