Cheery mood

Germany is one of only a few European countries where shoppers are expected to increase the amount they spend on Christmas gifts this year, according to a poll of 18,000 consumers conducted by professional services group Deloitte.

Germans will spend 4.3 percent more on this year's festive season than they did in 2010, topped only by the Finns at 6.8 percent. More than half of the Germans interviewed said they believe their economy is stable or growing, giving them the assurance they seek to spend more.

By comparison, nine out of 10 Greeks said their country is in a recession. Deloitte estimates their holiday spending will plunge nearly 23 percent.

Not so cheery everywhere

Christmas retail sales will also slip in other countries struggling with high debt loads. Portugal, for instance, will see a 7.9 percent dip, followed by Ireland at 7.4 percent. Spending in Italy, another country choking on sovereign debt, will be down 2.3 percent this year.

Only consumers in Spain, with its stalled economy and high unemployment, appear ready to defy austerity calls and spend 1.9 percent more than the year before.

The Deloitte survey also covered Ukraine, Russia and South Africa, where holiday spending is expected to increase 18.3 percent, 11.05 percent and 12.4 percent respectively.

Peter Thormann, an author of the report, said the poll detected "a clear drop in spending and move toward saving in a number of European countries."

Enjoy it while you can

Even in France, which wields a powerful voice in the eurozone crisis debate, the holiday spending mood is all but cheery.

Just over 70 percent of French consumers said they believe their country is in a recession. Shopping expenditure in the country is forecasted to grown by only 1.9 percent.

That is a significant figure given that the French typically spend more per person on Christmas than the Germans. This year, according to Deloitte, French shoppers will spend an average of 606 euros ($830) on gifts and food, compared with 449 euros by their German counterparts.

Interestingly, Ireland leads the per capita Christmas spending at 943 euros, followed by Luxemburg at 923 euros and Spain at 668 euros.

Thormann attributed the increase in German holiday spending to higher employment and higher wages – and a general feeling that consumers should take advantage of prosperous times. "Some say they want to enjoy life despite the crisis," he told Deutsche Welle.

Shop until you drop

Indeed, the mood among German consumers continues to defy both the eurozone crisis and the global economic downturn. The forward-looking general consumption indicator of German market research company GfK hit 5.3 points for November, up from 5.2 points in October.

GfK will publish its own outlook on German holiday spending later this month, a spokesman told Deutsche Welle.

If all the forecasts are correct, Germans are definitely in the Christmas buying spirit.

Author: John Blau
Editor: Sam Edmonds