According to the NPD's latest annual survey of consumers' holiday spending intentions, 30% of consumers intend to spend less this holiday season than they did last year; that's a 4% increase compared to 2008. Although the recession is clearly having an impact on the market, it could have been worse, NPD noted.
"That 4 percent increase is certainly a sign of the times. On the other hand, that 4 percent is not as dramatic as it could have been," said Marshal Cohen, chief industry analyst, The NPD Group. "I think consumers will be looking for the right gift, rather than the most extravagant or expensive one. That combined with the soft numbers we are up against from holiday last year, and I think we will see growth, albeit a modest 0.5 to 1.5 percent."