Australians are forecast to spend a massive $11 billion this Christmas, contradicting the revenue expectations of business owners.
The Commonwealth Bank’s Christmas Consumer Spending survey suggested overspending on Christmas presents will also increase this year to $625 million.
“While slightly more of us have set a budget this Christmas, Aussies will overspend by a huge $625 million,” said executive general manager Clive van Horen.
“Keeping track of spending is clearly not on the Christmas list for nearly 40 per cent of shoppers.”
According to Mr van Horen, only 57 per cent of Australians set a budget for their Christmas shopping. However there is a significant gap when comparing the spending habits of men and women, with only around one-third of men keeping to a Christmas budget.
“Christmas isn’t only an expensive time because of gift buying. It’s also a time of year where we entertain and go out more and spend a little extra on our homes so it’s really important we set a budget and keep track of how much we are spending and where that money is going,” he said.
The anticipated spending blowout comes despite a recent My Business poll indicating business owners are quite pessimistic of their sales figures this year.
Two-thirds (65.6 per cent) said they were expecting this year’s sales to equal or be lower than last Christmas, with just 24.7 per cent forecasting to cash in with higher sales.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.