The hot spending sectors in 2006 will include entertainment, travel, home décor, home furnishings, major appliances and entertainment equipment. Just over three quarters of homeowners (76%) plan to redecorate, renovate or repair their homes. Meanwhile 65% of respondants expect to do some personal travel in 2006 and 52% of those believe they will spend more money on travel in 2006 than they did in 2005.

"Across the board, Canadians are monitoring their spending closely," said Penney. "Higher income doesn't equate to more confidence or free-spending."

Major purchase spending projections for 2006:

• 24% of consumers expect to purchase major furniture with June and July being the most likely months to purchase.
• 18% expect to buy a TV, DVD player and/or home entertainment system. Most likely months are April, June or July.
• 17% expect to buy a home computer and/or video gaming system, with June, July and September the most popular months.
• 15% of all consumers expect to make a major garden purchase; April, May and June are the most likely months.
• 15% expect to purchase a vehicle. May, June and August were the most frequently cited timing.

Which categories are expected to remain stable or grow in 2006?

• Clothing, shoes and accessories: 85% of consumers expect to spend the same or more than in 2005 (58% say the same, 27% say more).
• Personal care products and services: 88% expect to spend the same or more (74% the same, 14% more).
• Entertainment: 81% intend to spend the same or more (56% the same, 25% more).
• Home décor and furnishings: 60% intend to spend the same or more (32% the same, 28% more). This product category received the largest expectation of increased spending among general consumers.

Which categories might see flat or lower sales in 2006?

• Home electronics: 77% intend to spend the same or less (32% say the same, 45% say less).
• Personal electronics: 79% expect to spend the same or less (37% the same, 42% less).
• Sporting goods: 79% expect to spend the same or less (45% the same, 34% less).
• Toys, crafts and hobbies: 75% expect to spend the same or less (47% the same, 28% less).

"Many Canadians are expecting to spend less on home and personal electronics in 2006, however this may be a reflection of how much they already spend in these areas," commented Penney. "Certain products, such as iPods and home gaming systems, were in big demand last year, particularly during the holiday season. Consumers may be considering taking a break in this category. That being said, a powerful product introduction could change their outlook."

Time to renovate, redecorate
Almost half (46%) of homeowners have planned some kind of redecorating project and 30% are planning major renovations or repairs. Twenty five per cent plan to landscape and 10% are planning to purchase a new appliance.

"For many Canadians, the enjoyment of improving their home is priceless - more than one in four Canadians say the most enjoyable spending they do is on their home," said Penney.

Travel ahead
With 65% of respondants planning to travel in 2006, where will their money go?

Canada (30%) followed by the United States (30%) and Europe (30%) will be the most popular travel destinations. Sixteen per cent are planning to travel within their home province.

Respondants indicated that they planned to purchase:

• Airline tickets (69%).
• Hotel or motel room rental (62%).
• Car rental (31%).
• Campground or RV site rental (23%).
• Organized tour (18%).
• Train tickets (13%); bus tickets (12%).
• Cruise (12%).