Gifts too dear? Why consumers may spend less this holiday season

Reports from retailers point to a healthy start to the holiday shopping season, but the sleigh ride could hit a snowdrift if the results of a recent survey amount to an accurate forecast.

Forty-two percent of the 1,005 American adults polled in November plan to spend less this holiday season, according to Princeton Survey Research Associates International. Just 10% plan to spend more than they did last year, the survey found.

“With stagnant household incomes and the steady increases in expenses that have squeezed discretionary buying power, consumers are limited in what they can and are willing to spend for the holidays,” said Greg McBride, senior financial analyst for Bankrate.com, which commissioned the survey.

Only 13% of Americans feel more secure in their jobs, while 28% actually feel less secure, compared with a year ago. And only 11% feel more secure about their savings, while almost half (46%) feel less comfortable. About 20% feel more confident when it comes to paying off debt.

The percentage of Americans reporting higher net worth, compared with last year, rose slightly to 21%, from 19%, while 27% said their net worth fell, down from 30%.

“Increases in spending we’ve seen compared to last year are not sustainable. It’ll be a solid holiday sales season, but 2012 is going to mean more of consumers’ paying down debt, boosting savings and holding back on big-ticket items,” Mr. McBride said.