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 Registers jingle in Christmas spend-up 

Registers jingle in Christmas spend-up

22 Dec, 2009 11:33 AM
TASMANIANS look set to rekindle their love affair with spending this Christmas, according to local businesses and experts.

Despite the global financial crisis, 2009 Christmas spending is expected to be on a par with last year.

While the 2008 Christmas spending boom was largely a result of individual stimulus package funds, the spending estimates for 2009 may indicate the economy is recovering.

The November Westpac Melbourne Institute consumer sentiment survey reported favourable figures for this festive season.

The expected national average for household gift spending was $317, pushing the total Christmas spend to around $2.5 billion.

Launceston Chamber of Commerce executive officer Lou Clark said the trend in Launceston indicated spending would not be affected by the year's economic unrest.

"There are no indicators out there to suggest it will be any worse than last year in terms of spending," Ms Clark said.

"The feedback at this point in time is that people are looking forward to a busy Christmas and some are even expecting that Christmas this year might be better than last year."

Supporting these claims, retail giant Myer has reported healthy sales across the country.

Myer executive officer Bernie Brookes said he was expecting a rise in sales.

"The consumer is still a bit resilient to spending but they're looking for a bargain," Mr Brookes said.

He said Myer was not seeing any significant influence on discretionary spending from interest rate rises.

"We're expecting Christmas to be about 3 per cent better than last Christmas," Mr Brookes said.

Of spending in Launceston, Ms Clark said businesses were seeing the best sales in electrical items this Christmas.

"In particular the items that have been selling well are electrical items like televisions, iPods, video games and that sort of thing.

"There is also a good demand for smaller items like auto accessories.

"The Buy Locally at Christmas will give it a bit of a push too this season, encouraging people to buy locally this Christmas."

In December, credit card use typically expands 16 per cent on the previous month.

But from 2005 to 2007 Australia's December splurge was contained to only an average of 5 per cent, but rebounded to 20 per cent last December courtesy of the Federal Government's economic stimulus payments.

Australians put $18billion in purchases and $1 billion in cash advances on their credit cards in September this year, the Reserve Bank said.

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•Jenelle Reisenleiter, of Hobart, and daughter Hillary, 4, on a Christmas shopping trip in Launceston ... Australians are spending up for the festive season.
•Jenelle Reisenleiter, of Hobart, and daughter Hillary, 4, on a Christmas shopping trip in Launceston ... Australians are spending up for the festive season.

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