Consumers are less gloomy as holiday season nears

After one of the most difficult years on record for retailers and consumers, Americans are more optimistic as the holiday shopping season kicks off, according to Deloitte’s 24th Annual Holiday Survey of retail spending and trends.

Fears about the recession are slowly subsiding, with more than half of those surveyed (54 percent) saying they expect the economy will improve in 2010, compared with 28 percent responding favorably last year. The optimism is also starting to show in Americans’ shopping plans. More than half of consumers (51 percent) hope to spend more or the same on the holidays, an improvement from last year’s 41 percent response.

Despite expectations for economic improvement, consumers continue to reduce their spending on gifts. The average number of gifts people plan to purchase declined to 18.2 percent from 21.5 percent last year and 23.1 percent in 2007. The amount consumers plan to spend on gifts is down as well, to $452 compared with $532 in 2008, and $569 in 2007.

Photo credit: Billy Ruth, www.sxc.hu