No Christmas spending spree, says survey

Economic conditions may be improving but it doesn't mean that consumers are about to
go on a mad spending spree over Christmas, a new survey has found.
Wednesday's national accounts are expected to show the economy grew for a third
straight quarter in the three months to September, much to the envy of other leading
economies.
Last week's unexpected fall in the jobless rate to 5.7 per cent also suggested that
the rise in unemployment may be peaking.
However, the latest Essential Research online poll suggests such improving
conditions doesn't mean there will be extra presents around the Christmas tree this
year.
The poll released on Monday found that only 11 per cent of the 1,055 respondents
surveyed said they would spend more than they did last Christmas.
Nearly half (47 per cent) said they would spend much the same as last year, while 38
per cent said they would spend less.
Another survey released on Monday also showed that while the economy has has gotten
over the worst of the doom and gloom of a global recession, consumers won't be
marking it with a well-earned holiday travelling around Australia or abroad.
While last week's Westpac-Melbourne Institute consumer sentiment survey showed that
confidence remains relatively high despite three interest rate rises, additional
questions asked - but only released on Monday - suggest we are more likely to stay
at home this Christmas.
The survey found 36.4 per cent expect to travel these holidays, down slightly from
the 37.7 per cent that reported travelling over last year's Christmas holidays.
And only 3.9 per cent of consumers are planning to travel abroad, down from eight
per cent last year.
"This is despite a surging Australian dollar, which has made international travel
much more affordable," Westpac senior economist Matthew Hassan said, releasing the
results.
A "tourism-weighted" exchange rate index showed the Aussie dollar is 26 per cent
higher than a year ago, he said.
"The result may reflect the pattern of Christmas travel which tends to be
'short-haul' trips to Southeast Asia and New Zealand where currency movements have
been somewhat less favourable."
Notably, respondents with a mortgage recorded the largest reduction in their travel
plans compared to last year, with 35.7 per cent saying they would be travelling,
against 41.7 per cent last year.
This group also registered a big 8.9 per cent fall in sentiment in last week's
December report.
The Essential survey found that despite falling company profits during the economic
slowdown, it doesn't mean employers have turned Scrooge.
Forty-four per cent of respondents said their employer was paying for staff
Christmas functions, down only a fraction from the 45 per cent last year.
Only three per cent said their function had been cancelled, compared to six per cent
last year, while 12 per cent said their event would be smaller, versus 10 per cent
in 2008.
Only one per cent said their employer would be spending more than usual, while 31
per cent said their employer doesn't usually pay for a Christmas function.