93 percent of Americans say that they anticipate spending less or the same amount as last year on holiday gifts according to a poll released by the associated press. Earlier in the season many forecasters were hopeful about the holiday season but that tune has changed as many Americans struggle to wriggle out from under the debt they have racked up during unemployment
Around 50 percent of the individuals who participated in the poll claim to be suffering from debt-related stress of some kind while 22 percent claim to be experienced those feelings at intense levels. That number is up 5 percent from last spring when public sentiment already seemed to have hit rock bottom.
80 percent of those surveyed intend to use cash for all of their purchases as a means of warding off debt later, but this also threatens to encourage people to spend even less than they have been.
Unemployment is up to 10.2 percent, the highest it’s been since the Second World War, encouraging even those currently secure in their employment to spend carefully.
Cash purchases will support this behavior, preventing the impulsive behavior permitted by credit cards.
Consumer behavior over the holiday season is an important gauge of how America is rebounding from the recession and is sure to influence retailers for the coming year. As a rule consumer spending is the most important driver of the economy and for the moment the overall outlook is grim.
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