Business

By now it's clear to anyone who reads a newspaper or watches TV news that holiday sales will be down this year.

One recent study shows that even the so-called super affluent, those who make $250,000 a year or more, are cutting their luxury budgets by 20 percent.

Overall retailers say they will be happy with sales growth in the low single digits. Some analysts are predicting negative results after December.

But one study that hasn't gotten much attention is a Consumer Reports poll that says while 76 percent of Americans will cut holiday spending and 59 percent will buy fewer gifts, the vast majority, 88 percent, say the season will be just as merry for them them as last year.

And 28 percent said they think they be happier than before.

Mike George of North Phoenix says he is "back in the middle class" now that business at the home-entertainment installation company he owns, Profound Creations, has slowed. But he isn't troubled.

George, who has two preschool-age kids said this Christmas won't be as big as ones in the past. "It's going to be a season of togetherness and sentimental gifts. But it will be just as good. Maybe better."

Matt Clausen, a Chandler graduate student, father of four kids younger than 8 and marketing manager for a credit-card processing company, echoed that sentiment.

In the tight economy, his family decided to cancel a trip to Sea World this season. Instead, the kids are getting new paint for their bedrooms.

"They'll be happy," he said.

Excerpted from Cathryn Creno's blog at azcentral.com/members/Blog/BuyingCentral.