Despite tough economic conditions, Australians are expected to spend only slightly less on Christmas gifts, according to the December Sensis® Consumer Report released today. Many will also consider the environment when making their Christmas purchases.

Report author Ms Christena Singh said Australians on average were expected to each spend $871 on Christmas gifts, $35 less than last year.

“We are still very much in the spirit of the season, buying gifts for 11 people, the same number we bought for last year.

“But instead of spending $82 per gift, Australians are expecting to spend $79 per gift on average,” Ms Singh said.

The report indicates Christmas retail will vary across Australia: strong Christmas spending is expected in New South Wales, the Northern Territory, Tasmania and Western Australia. However, spending in the rest of the nation, particularly Victoria, is expected to contract.

“The spending predictions are good news for New South Wales retailers, who have been battling with weak consumer demand for some time now.

“Victorian retailers will need to adopt last minute innovative sales and marketing programs if they are to encourage people to spend the money they received through the Government’s economic stimulus package,” she commented.

However, there are encouraging signs for the environment this Christmas.

Four in 10 Australians said they would consider the environment when purchasing gifts this year, with packaging being the main factor.

Environmental factors Australians will consider when purchasing Christmas gifts:

• The packaging (34%)
• How far it has travelled (30%)
• What it is made of (28%)
• Whether it will benefit the environment (20%)
• How it will be eventually disposed of (17%)
• Energy use of item (13%)
• Whether the company is environmentally responsible (12%).

“It is encouraging to see, even in a challenging economic environment, many Australians will consider the environment when purchasing gifts this year.”

The bulk of Australians’ Christmas present budget will be spent on toys (19%), clothing (13%), gift vouchers (7%), books (6%), cash as a gift (5%) CDs/DVDs (5%), homewares (5%), personal grooming items (4%), electronic games (4%) and jewellery (4%).

About Sensis

Sensis is Telstra's advertising business and Australia's leading directories information resource, helping Australians find, buy and sell. Sensis delivers innovative and integrated local search and digital marketing solutions via print, online, voice and mobile channels to connect Australians 24 hours a day, seven days a week. Sensis' powerful, multi-channel portfolio provides an unparalleled local information source incorporating the White Pages® and Yellow Pages® directories; the MediaSmart digital advertising business; the Whereis® digital mapping business; the Citysearch® entertainment and lifestyle website; the sensis.com.au search engine; the 1234 operator-assisted, premium voice information service; and the accommodation website gostay.com.au. Sensis is also a partner in some of China's most popular websites including real estate and home furnishings website, SouFun.com; auto websites Autohome.com and Che168.com; and digital devices websites IT168.com and PCPop.com.cn.