Canadians plan to spend more this holiday season, despite financial challenges, according to a new survey.
The Retail Council of Canada says holiday spending is set to reach an average of $972, up eight per cent.
However, 90 per cent of Canadians plan to seek out deals in the face of ongoing inflation concerns.
Three-quarters of respondents to the survey said they plan to maintain or increase holiday spending.
But 71 per cent are adjusting gift-giving habits, buying fewer gifts and zeroing in on the best deals.
Spending is focused on clothing and holiday home entertaining, each grabbing 16 per cent of the budget.
Gift cards are also big, with 42 per cent opting for them as a flexible gift option.
Ontarians are expected to spend the most at $1,158 on average, an increase of 11 per cent over last year.
Atlantic Canada was the only region to see a drop in average spending, which is expected to be around $904.