November 13, 2001
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Holiday Spending
The budget for holiday gifts is shrinking — down from $930 in 1999 to an average of $775 this year. (ABCNEWS.com)
A Chintzy Christmas?
Holiday Spending Plans Down for Second Year in a Row

Analysis
By Dalia Sussman

ABCNEWS.com

N E W   Y O R K, Nov. 14 — Americans are trimming back their holiday spending plans for the second year straight, marking a significant decline in retail prospects from the peak year of 1999, according to a new survey from ABCNEWS.com.



Sampling, data collection and tabulation for this poll were done by TNS Intersearch.
Those who buy holiday gifts estimate they'll spend an average of $775 this year, down slightly from an inflation-adjusted $826 last year, and down even more — a $155 per-person drop, on average — from $930 in 1999.

Declining consumer confidence helps explains the trend. In late 1999, a near-record 54 percent of Americans called it a good time to buy things; that declined to 49 percent late last year and 45 percent now in the weekly ABCNEWS/Money magazine  poll.

The ABC/Money Consumer Comfort index, based on combined ratings of personal finances, the national economy and the buying climate, is now -4 on its scale of +100 to -100, compared to +29 at about this time in 2000 and 1999 alike.

Many Are Unsure About Spending Levels

The outlook for retailers still can change, however: Traditionally the holiday shopping season doesn't start in earnest until after Thanksgiving. And 13 percent of Americans say they aren't yet sure how much they'll spend.

Holiday spending plans are more robust in the Northeast and South than in the West and Midwest. Westerners report the biggest drop in spending plans: $707 this year compared to an adjusted $918 last year. In the most recent ABC/Money poll, only 39 percent of Westerners called it a good time to buy things, seven to 10 points lower than in other parts of the country.

Men, on average, say they'll spend slightly more than women, while larger and higher-income households also plan to spend more. And naturally, having kids is a major factor. Planned spending jumps from under $700 in one- and two-person households to $867 in three-or-more person households.


Average Spending Plans for 2001
Men   $802
Women   $749
Northeast   $857
South   $847
West   $707
Midwest   $681
Household Size:
    One   $612
    Two   $696
    Three   $867
Under $50,000   $558
Over $50,000   $858

Methodology

This ABCNEWS.com survey was conducted by telephone Nov. 7-11 among a random national sample of 1,030 adults. The results have a three-point error margin. Sampling, data collection and tabulation were done by TNS Intersearch of Horsham, Pa. Previous ABCNEWS polls can be found in our Poll Vault.

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