Australians cutting mates form Xmas list to save after interest rate rises

CONSUMERS are dumping mates from their Christmas gift lists to stretch their dollars further.

CONSUMERS are dumping mates from their Christmas gift lists to stretch their dollars further, according to research.

Only a third of Aussies will put a present under the tree for their pals this year - half the number of last year - a survey has found, reported the Herald Sun.

Australian National Retailers Association boss Margy Osmond said friends were being bumped towards the bottom of the pressie pile as consumers cut any spending considered unnecessary.

The industry is steeling itself for a potentially dismal festive season as cautious consumers reeling from recent interest rate rises concentrate on saving money and buying only bargains.

Experts predict only modest sales growth at what is traditionally the bumper time of year.

The ANRA and American Express study of 1000 people found the lion's share of gifts will flow to immediate family and children.

One in four intends to also buy for extended family.

And 13 per cent shell out for a Kris Kringle, treat themselves to presents and pamper pets.