European families to spend more this Christmas, though not in France -survey

PARIS, Nov 7 (Reuters) - While families across Europe prepare to spend more on average this Christmas for the first time since 2008, the French look set to spend less as they grow more pessimistic about their purchasing power.

A survey by market research group Deloitte showed on Thursday that the average Christmas budget across Europe will rise 0.7 percent this year to about 450 euros per family.

The increase was led by Switzerland, where spending will grow 3 percent to an average 656 euros, and Germany, where families will spend 6.7 percent more - although that still only comes to 399 euros.

Among Europe's biggest Christmas shoppers, families in Luxembourg will spend 825 euros on average, up 0.2 percent from last year, those in Finland will spend 1.3 percent more at 692 euros, and those in Denmark will splash out 634 euros, up 1.1 percent, the poll showed.

In France, however, families expected to spend 0.9 percent less this year, at an average budget of 531 euros. This would compare with rises of 1.9 percent and 0.7 percent for 2011 and 2012, respectively.

Deloitte said Christmas spending would still fall in Italy and Greece, though at more moderate rates, but it was set to rise 1 percent in Spain after falling 4 percent last year.

Deloitte found that in France, where record high jobless numbers and wrangling over tax levels have clouded government efforts to revive a sluggish economy, 44 percent of those polled feared their purchasing power would further deteriorate in 2014, up from 40 percent last year.

"We are in a situation where worries over future purchasing power is a brake on consumption," Stephane Rimbeuf, Deloitte Associate in charge of Consumer Business, told Reuters.

Deloitte linked the expected rise in the average European Christmas budget to the view that the overall economy was improving.

The European Commission forecasts that in 2014 all European Union countries except Cyprus and Slovenia will see their economies grow, with top economy Germany expanding 1.7 percent and second-biggest France 0.9 percent.

Deloitte surveyed 17,354 people across 16 countries around continental Europe as well as in South Africa.

A separate study for toy retailer La Grande Récré found that French parents were set to spend an average of 112 euros per child this Christmas, down from 116.75 euros in 2012.