'Happy shoppers' lift holiday spending

Tobi Cohen, Financial Post ·

OTTAWA— Canadians are expected to dig deeper into their wallets this holiday season than they have in the last two years according to a new survey that predicts the average person will spend $968 in 2010.

Scotiabank’s annual Holiday Spending Study, which measures expected spending on gifts and entertaining, found that’s up from $891 last year and $884 in 2008.

“For the most part, Canadians appear to be happy shoppers this holiday season,” Scotiabank deputy chief economist Aron Gampel said in a statement accompanying the survey results.

“Unlike the performances throughout the developed world, Canada’s economy has fully recouped the employment and economic losses incurred during the recession, with increasing activity in the commodity-producing regions and buoyant housing markets helping underpin confidence and spending power.”

According to the survey, men are expected to spend more than women, young Canadians aged 18-34 are more likely to be working over the holiday and gift cards remain the most popular gift to both give and receive, the survey found.

Other popular gifts among givers are clothing (40%) and electronics (39%). Some 33% of people like to receive electronics while 32% prefer cash.

Women were most likely to ask for gift cards, clothing, trips, jewelry and housewares, while men wanted electronics, tools and sporting goods.

For the second consecutive year, Albertans are planning to spend the most on gifts ($886), while Quebecers will spend the least ($494).

Overall holiday spending among Albertans is expected to push $1,388, compared with $776 among Quebecers.

The survey also found half of all Canadians, particularly those over 50, said they’ve saved enough in advance to cover everybody on their list.

“Though concerns have mounted over the continuing run-up in household indebtedness, the survey indicates the responsiveness of Canadians to manage their finances and spend more responsibly,” Mr. Gampel said.

The online survey of about 1,000 Canadians was conducted by Harris/Decima between Oct. 25 and Nov. 2.