Half of Canadians plan to spend less during the holidays this year, but most expect the economy to improve next year, a recent survey by RBC finds.

The inaugural RBC Canadian Consumer Outlook report, released on Tuesday, found that nearly two-thirds of Canadians expect the Canadian economy to improve over the next year, while only 14% expect it to worsen.

But people are less optimistic in the short term, and are tightening their belts over the holiday season: one half plan to spend less this year than last year and 18% said they would not buy any gifts at all. On average, Canadians expect to spend $1,218 on holiday purchases, including gifts, decorations and entertaining.

“The recent economic times have left many Canadians feeling uneasy about their financial well-being and this is reflected in their restraint when it comes to holiday spending,” said David McKay, group head, Canadian Banking, RBC.

The new monthly benchmark index from RBC measures Canadians’ perception of current conditions compared to three months ago, as well as short-term prospects for their personal finances, their job anxiety and a number of other factors. It surveyed more than 1,000 Canadian adults in mid-November.

On the topic of job anxiety, 27% of Canadians said that a member of their household is worried about losing their job or being laid off. These concerns are more common in Alberta, where more than one-third of respondents were worried about job loss, compared to just 12% of respondents in Manitoba and Saskatchewan.

In terms of overall personal finances, 39% of Canadians feel that their financial situation is worse than it was three months ago. But more than a quarter expect their personal financial situation to improve in the next three months.

Nearly four in ten Canadians expect their personal economic situation to improve over the next year.

Canadians are divided on interest rate expectations, with 52% expecting interest rates to rise in the next six months and 42% expecting rates to stay the same.