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Thursday, 24th November 2005 (5444 views)

US consumers are expected to shrug off rising oil prices by spending more on Christmas gifts than they did last year.

The gold and jewellery industry is set to profit as market research outfit Gallup predicted US consumers would shell out an average of $763 for yuletide presents in 2005 – up from $730 last year.

The results may surprise analysts who predicted consumers would batten down the hatches in the wake of Hurricane Katrina and surging fuel costs.

But Gallup's Frank Newport say this proves otherwise.

"Analysts, this year in particular, have been speculating about the long-term impact of Hurricane Katrina and the run-up in gas prices.

"These data suggest that retail spending this holiday season will not be depressed and may exceed normal seasonal patterns, despite what some consider a negative economic climate."

Recent results from top jewellers – including Signet – also indicated that the State-side luxury market is buoyant despite recent events.

But Gallup's upbeat findings stand in opposition to recent figures from the Conference Board in New York, which expects holiday spending to slip fractionally to an average of $466 per person.

Gallup expects total US holiday sales to hit $439.53 billion this year.

 

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