Consumers won't let credit crunch affect Christmas spending : Credit Card Guide

Consumers won't let credit crunch affect Christmas spending

According to a recent report the credit crunch that has taken hold in the UK and globally is unlikely to affect consumers' spending over the festive season, with surveys indicating that the level of spending this Christmas and New Year is set to go up.

According to a recent survey consumers are set to spend around 7% more than they spend over the Christmas and New Year period in 2006 despite the problems that have hit the financial markets and despite the five interest rate rises that have taken place since August of last year.

In 2006 the average per person spent over the festive season was around £662 and this is set to rise to around £706 per person. The information comes from the Christmas Retail Survey that was published the business advisory firm Deloitte. According to the results of the survey not only are consumers set to spend more this Christmas but there is also likely to be an increase in the number of consumers that do their shopping for Christmas online.

One spokesperson from Deloitte stated: "Early indicators suggest concerns about bruised financial markets and consumer confidence are nothing more than concerns. People feel secure in their jobs and the general sentiment is robust ... there's little evidence of household cutbacks."

There is likely to be an increase in the number of consumers wanting to buy luxury and hi-tech goods this Christmas too. Another Deloitte official added: "This year, Christmas will go electric as consumers embrace the digital age. More people will shop online this year than ever before as the appeal of cyberspace to avoid the Christmas crush takes hold."

Tom Smith
25th November 2007

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