U.S. consumer to spend less this holiday: survey

NEW YORK, Nov. 23 (Xinhua) -- U.S. consumers are holding tight to their wallets and average household spending this holiday season is expected to drop seven percent from last year, a latest survey shows.

New York based Conference Board, a private research group, reported Monday that its survey of Christmas gift spending found U.S. families plan to spend an average of 390 U.S. dollars this year, down from last year's 418 dollars.

"Consumers are approaching the holiday season very cautiously," says Lynn Franco, director of the Conference Board Consumer Research Center. "Job losses and uncertainty about the future are making for a very frugal shopper."

Survey shows that only 26 percent of all households intend to spend 500 dollars or more on Christmas gifts, down slightly from 27 percent last year. Among other households, 35 percent plan to spend between 200 and 500 dollars, down from 37 percent last year, and 39 percent are planning to spend less than 200 dollars, up from 35 percent in 2008.

Conference Board says a separate survey suggests that consumers will also approach online holiday shopping very cautiously, holding off on big ticket items and holding out for major incentives like free shipping and discounts.

"Retailers will need to be quite creative to entice consumers to spend, both in stores and online this holiday season, as consumers most certainly will expect major markdowns and bargains," Franco said.