It's looking like a lean Christmas: survey
Last Updated: Tuesday, December 1, 2009 | 2:45 PM ET
CBC News
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Nearly half of Canadians plan to spend less during the holidays this year, with just over a quarter saying they're still worried about job losses, an RBC survey suggests.
Forty-seven per cent of people surveyed said they plan to tighten their belts over the holiday period, and 18 per cent said they will not buy any gifts at all.The RBC survey polled about 1,000 Canadians earlier this month. The results are considered accurate to within 3.1 percentage points, 19 times out of 20.
The survey found 62 per cent of respondents expected the economy to improve once the new year rolls around.
"The recent economic times have left many Canadians feeling uneasy about their financial well-being and this is reflected in their restraint when it comes to holiday spending," David McKay, RBC's group head of Canadian Banking said in a news release Tuesday.
The index is a measure of the public's perception of current conditions compared to three months ago. The survey polled people on their personal finances, job anxiety and feelings about the future of the economy.
Job insecurity appears to be a factor in why Canadians suggest they may spend less. Of those polled, 27 per cent said a member of their household is worried about losing a job or being laid off.
Just under 40 per cent of those surveyed said their personal financial situation is worse than it was three months ago. Twenty-seven per cent said they think their personal financial situation will improve in the next three months, and 38 per cent said it would improve over the next year.
Other recent surveys on holiday spending have also suggested people are tightening their belts. A TNS Canadian Facts survey found a reduction in consumer confidence and projected this Christmas would be the lowest-spending holiday season since 2005.
However, Canadians polled before holidays past often say they're planning to spend less, even in the good times.
A Scotiabank survey in 2006 suggested people were planning on trimming shopping lists, and yet a survey by Moneris found the number of credit and debit transactions ahead of Christmas in 2006 had actually increased from 2005. The figures did not include cash transactions.
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