CUNA and the Consumer Federation of America delivered good newsto the nation's retailers Wednesday: according to the groups'annual survey, consumers plan to spend more on holiday gift givingthis year.

Based on survey results collected from 1,012 respondents, CUNAChief Economist Bill Hampel forecasted a 3.5% to 4% increase inspending over last year, representing the fourth year in a row spending has increased since decliningsharply in 2008.

About 12% of respondents said they would spend somewhat or muchmore than last year, compared to 8% in 2011. Forty-five percentsaid they would spend about the same as last year, and 38% saidthey would spend somewhat or much less, a drop from 41% who saidthey would spend less in 2011.

While the 43% of respondents who said they felt their financialsituation was “about the same” was unchanged from 2011, the surveycaptured an increase in those who felt their situation was much orsomewhat better: 24% compared to 19% in 2011.

Meanwhile, 33% said their situation was somewhat or much worsethis year, a decrease from 37% in 2011.

Demographically speaking, more men (14%) reported they wouldspend more this year compared to women (10%). Hampel deadpannedthat statistic could possibly be the result of male optimism andcompensating for a lack of nurturing behavior by men toward theirfamilies during the year.

Age also played a big role, with 25% of respondents ages 18 to34 saying they would spend more, by far the highest percentage inany age group. Hampel noted that while Gen Y is reporting they willspend more, that doesn't mean they have deep pockets.

A new question added to the 2012 survey revealed that half ofall respondents do not have $1,000 on reserve to pay for unexpectedexpenses. CFA Executive Director Stephen Brobeck said that figureis critical because research shows households with rainy-daysavings do much better financially than those that don't. Brobecksaid significantly more households report having $500 insavings.

Brobeck called the lack of savings “the real world in which mostof the U.S. lives.” The CFA chief said results from a separatesurvey his organization will officially release in two weeks showsthat low-income earners say they would need $3,000 in savings toprotect against unexpected expenses.

“That shows they're not thinking about losing their job,” hesaid, but rather preparing for unexpected car repair or medicalexpenses.

This is the 13th year the two groups have conducted the annualsurvey.