Families expected to spend less this Christmas, data reveals
Families are expected to spend less this Christmas as pressure from inflation and rising interest rates mount, data from Westpac economists reveals.
Close to 74 per cent of Australians say they'll be reducing what they spend during Christmas this year, with the average total budget forecasted to be $863 per person, including food, decorations, events and presents.
Shoppers will also use loyalty programs to help save money, the research suggests.
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Close to 74 per cent of Australians say they'll be reducing what they spend during Christmas this year, with the average total budget forecasted to be $863 per person, including food, decorations, events and presents. Nine
"Budgeting is top of mind as we head into the peak spending season with households planning smaller and simpler festivities with the higher cost of living," Westpac's Managing Director of Consumer Finance Steve Rubenstein said.
"Customers are definitely feeling the pinch."
Some shoppers are expecting to spend much more than the predicted average, with one telling 9News expected to spend up to $2000 on gifts, while another said presents will cost them $1000 minimum.
Aussies are also expected to fork out cash across a range of industries, with 46 per cent expected to spend money on food and drink, 29 per cent forecasted to buy clothes and personal items and another 24 per cent expected to pay for travel.
New technology, entertainment, home maintenance and beauty services are also categories where significant spending was forecast.
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Close to 74 per cent of Australians say they'll be reducing what they spend during Christmas this year, with the average total budget forecasted to be $863 per person, including food, decorations, events and presents. Nine
While household spending is forecasted to decrease, retailers are still hopeful that customers will show up and spend in preparation for the Christmas season.
"We expect over 600 thousand people through for the week before Christmas," Chadstone Shopping Centre manager Daniel Boyle told 9News.
Close to one-third (32 per cent) of shoppers are expected to do their Christmas shopping online, data also shows.
Black Friday sales begin at the end of next week, with experts expecting them to break sales records as Aussies avoid paying full price.
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