Survey: 40% of Shoppers to Cut Holiday Spending

New York City, Four out of 10 U.S. shoppers said they plan to spend less this holiday season because of higher food and fuel costs and falling home values, according to an annual survey by Deloitte.

Of the more than 14,000 people surveyed, 41% said they plan to reduce spending for the three months through January, the highest in at least seven years. Another 52% said they'll spend about the same, and the remaining 7% plan to boost purchases. Consumers expect to cut back on home goods, entertainment, clothing and charitable gifts, the survey said.

Shoppers plan to spend the same amount on gifts, the survey said, while buying less for themselves and their homes.

U.S. retail sales will gain 4.5% to 5% for the three months through January, compared with last year, Deloitte predicts. The National Retail Federation forecast a 4% sales gain for November and December combined, the smallest in five years.