Consumer electronics survey shows darkening mood for holiday consumer spending

Consumer electronics sales are expected to be up 3.5 percent in the fourth quarter, down from 7 percent a year ago, an indication that consumer spending is slowing down but not dramatically so, according to an industry survey. Overall, each consumer plans on spending $200 less on average this year for the holidays compared to 2007.

The Consumer Electronics Association conducted the 15th annual survey during late September, a period that overlapped with significant economic turmoil. Arguably, though, consumers’ moods have darkened even further over the past couple of weeks.

According to the survey, consumer electronics account for four of the top 10 items on adults’ holiday gift wish lists, with computers coming in second behind peace and happiness (which, I guess, shows there’s hope for us all yet).  High-definition TVs, video game systems and cell phones are also in the top 10 most desired gifts. Consumer electronics is gaining on other categories of gifts. About 80 percent of adults said they wanted an electronics gadget, up four percentage points from last year. Teens are even more gadget crazy, with 84 percent (up 8 percentage points from 2007) of them asking for a consumer electronics gift. The teens want computers, video game consoles, portable music players and cell phones.

Consumers plan to spend $1,437 this holiday season on everything from gifts to food to decorations. That’s down nearly $200 from last year as consumers cite cost of living increases and economic concerns as reasons for cutting back. The budget for consumer electronics purchases accounts for 28 percent of the holiday budget this year, up 6 percentage points from a year ago.

Consumers are less likely to get approval for credit-card spending this year. About two-thirds of consumers said they will use coupons and spend more time shopping around for bargains this year. As Black Friday rolls around on the day after Thanksgiving, you can expect some crazy bargains, including loss leaders such as a $100 Blu-ray player, said CEA spokesman Jim Barry. The CEA offers its own shopping tips.

In other news, the CEA released its first consumer electronics environmental sustainability report today at its Industry Forum in Las Vegas. It notes that consumer electronics companies are reducing their greenhouse gas emissions, both in internal usage and in the products they make.

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