Only 11 per cent of Aussies to increase spending this Christmas

Aussies appear to still be cautious about how much they spend on their debit cards, as recent figures suggest that only 11 per cent of people plan to increase the amount of money they will use to purchase Christmas presents this year compared with 2010.

Data from the Westpac-Melbourne Institute indicated that 34 per cent of consumers will spend less this year, while 54 per cent will not change their budget from the year before.

Matthew Hassan, senior economist at the organisation, said there is likely to be a 1.2 per cent dip in spending over the festive period.

According to the figures, consumers in Queensland and Victoria will be reducing their expenditure, while those in New South Wales, Victoria and Western Australia will be spending more.

Some 47 per cent of respondents said they have budgeted to spend over $500, up from 43 per cent the year before.

Recently, data from the Australian Bureau of Statistics revealed that retail turnover rose by 0.4 per cent in September.

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