About 48% planned to spend less in 2009 while 42% said their spending would be about the same, the Westpac McDermott Miller Consumer Confidence Survey says.
All regions showed similar levels of caution but rural consumers were likely to be more cautious, with 51% saying they would spend less compared to 45% of urban spenders.
Westpac chief economist Brendan O'Donovan said the reluctance to spend was likely to reflect consumers' continued caution about economic conditions and tight cashflows.
Of those that gave a spending estimate, 45% said they would spend more than $500, 19% expected to spend $300-$500 and 36% planned to spend less than $300.
"Overall the median New Zealand consumer plans to spend $443 on Christmas gifts in 2009."
The planned average spend was higher, being more than $500.
Janelle Hendry, of Oamaru, said she was spending about $150 less than she would normally because finances were tighter, especially as they were building a new home.
Many of the shoppers spoken to by the Otago Daily Times yesterday put a limit on what they would spend for each person which had not changed from previous years.
Sandra Turnbull, of Oamaru said she was spending about the same but was being careful to "not go overboard".
Marlene Pooley said she was not stressing about her Christmas budget, with the family spending less than the survey's median.
"We'd usually spend $250 to $300 on the four of us."
Australian Lucy Fedrizzi and her family were in Otago for Christmas with relatives and were planning on spending a similar overall amount on gifts, but stretching it across more people as they had already spent a lot on air fares.
"We're buying for more than usual, so the per person spend will be less."
A similar Australian survey showed 35% would spend less this Christmas and 14% expected to spend more.
