2006
(14/12/2006) Fears of global spending slowdown stoked by new AXA report
- The average working Briton is planning to cut their Christmas present budget by 12% compared to 2005 1
- Amount spent by individuals set to fall to £531 in 2006 from £600 1 in 2005
- BUT – Britain second only to the USA in global spending on presents 2
- Top ten spending nations all plan to reduce the amount spent on Christmas gifts this year 2
A new global report from AXA confirms the concerns of some retail analysts 3 that tills in the UK will be ringing a little slower this Christmas. With millions set to spend less on presents for friends and family the only solace to be taken is the Brits still spend significantly more on Christmas presents than many countries around the world.
| Top Ten Spending Countries in 2006 2 | 2006 | 2005 | % change |
|---|---|---|---|
Amount working people are planning to spend on Christmas Presents in 2006 (Figures in GBP for comparison) |
Amount working people are planning to spend on Christmas Presents in 2005 (Figures in GBP for comparison) |
||
| USA | 623 | 764 | -19% |
| UK | 531 | 600 | -12% |
| Canada | 457 | 488 | -7% |
| Australia | 334 | 371 | -10% |
| Spain | 318 | 432 | -26% |
| France | 296 | 335 | -12% |
| Italy | 290 | 373 | -22% |
| New Zealand | 281 | n/a4 | n/a |
| Germany | 270 | 300 | -7% |
| Belgium | 252 | 272 |
Alison Green of AXA said:
“Spending on discretionary items, such as presents, are often seen as a barometer for the consumer economy. The fact that all of the countries in the top ten highest spending nations2 are seeing significant drops in their planned Christmas spending budgets, may set alarm bells, rather than jingle bells, ringing during the run-up to Christmas.”
Interpreting the data
Firstly, from a global perspective, Britain is still in a very healthy position, coming second only to the US when it comes to festive present buying.
Secondly, and possibly a longer term concern, is that spending in the world’s leading economies is slowing down – as evidenced by the fact that people in many different countries have decided that they can spend less this year on friends and family.
Where will the money be going?
The typical Brit doesn’t seem to be showing much imagination when it comes to choosing what to spend their hard on money on though:
- A whopping 93% of working people say that they will be buying books, CDs, DVDs, theatre or concert tickets;
- 88% will be buying clothes;
- And 83% will be buying sweets or chocolate.
The least popular gifts to give are mobile phones, digital cameras and travel vouchers.
Alison Green of AXA continued:
“With Christmas being one of the major costs in the calendar year along with holidays, birthdays and anniversaries it is a good indicator of how we are feeling about our financial well-being. Although our research shows that people are planning to trim the amount they spend this year, they are still spending healthy sums on gifts.
“Maybe it’s too much to hope for – but after the credit boom we have seen in recent years, maybe the messages about financial planning that AXA and others have been stressing, are beginning to bear fruit.”
Notes to editors
1 . 12% comes from the comparison of the 2006 AXA Retirement Scope research (conducted by GFK-NOP in16 countries across the globe, totaling 11,373 interviews. In the UK 710 were surveyed in July and August 2006.) and 2005 AXA Retirement Scope.
2 . Top Ten Spending Countries table, 2006 figures taken from the 2006 AXA Retirement Scope research converting the figure in Euros to Sterling according to the most recent exchange rates. 2005 figures AXA Retirement Scope research in 2005.
3 . Comment from Richard Perks, Director of Retail Research at MINTEL in the UK Retail Briefing - Non-foods Focus - November 2006 http://reports.mintel.com/sinatra/reports/view&name=press_releases/
display/id=248061/display/id=247404
4 . 2005 research not available for New Zealand
Further information
Kirsty Marshall / James Murray / Neil Gregory , Lansons Communications, Tel: 020 7566 9720 / 020 7294 3611
Rachel West, AXA, Tel: 020 7920 5141 Mobile : 07974 8303214
About AXA
AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe , North America and the Asia/Pacific area. AXA had € 1,091 billion in assets under management as of June 30, 2006 , and reported total revenues of € 41 billion and underlying earnings of € 2,090 million for the first half of 2006.
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