WASHINGTON-Holiday cheer continues to be sparse as the holiday season approaches.
A new survey of Americans conducted by the Consumer Federation of America and CUNA found that a significantly higher percentage (37%) reported that their financial condition was worse this year than a year ago (30%).
On the other hand, this year only 19% reported that their condition was better compared to a year ago, while 23% responded that way last year.
Forty-one percent of those surveyed said they were planning to spend less this year than last year, compared to only 8% who said they planned to spend more (figures quite similar to what was reported in 2010).
These results are an improvement from the 55% of respondents who said they intended to spend less in 2008's survey, at the depth of the Great Recession.
But from 2000 to 2007, the percentage who indicated they planned to spend less never exceeded 35%, CUNA noted.
"The good news is that spending plans are stronger than they were at the worst stage of the recession in 2008," said CUNA Chief Economist Bill Hampel "The bad news is spending plans are still considerably below where they were before the recession."
Not surprisingly, the survey revealed a direct link between financial condition and spending, with those reporting better condition more likely to spend more and those reporting a worse condition more likely to spend less.
Of those who said they planned to spend more, 33% indicated their financial condition was better than a year ago, while only 19% said it was worse. Of those who said they planned to spend less, only 15% indicated their financial condition was better while 55% said it was worse.
Among The Other Findings:
* 27% said they are worried about monthly credit card payments.
* 45% are worried about making payments of all types.
* 35% of households with at least $100,000 in annual incomes, said their financial situation was better than a year ago.
* 50% of households with annual incomes below $25,000 said their financial sitution is worse than a year ago.
