The latest survey of consumer confidence by the Chamber of Commerce of Western Australian and the Industry-Curtin Business School have shown that despite hard times, consumers in that state would still be willing to splurge for this coming 2012 Christmas season.

Although confidence in WA's economy had fallen to a record low, most households or 54 per cent expect to spend the same amount as they did in 2011, with over one-fifth saying they might spend more.

The survey revealed folks residing in WA have become pessimistic over the tides of the state's economy, as only 18 per cent of households expect economic conditions to look up in the next three months. Another 13 per cent expected the worse, saying WA's economy will further deteriorate.

The slump in consumer confidence was mainly fueled by the rising cost of living, which serves as barometer for a household to say it is confident of its financial capacities.

Among these household perceptions include utilities, where more than three quarters reported paying more compared 12 months ago. Two-thirds said their budget for groceries had become more expensive.

It was also discovered in the survey that households were reducing on discretionary spending, with most of the cutbacks focused on entertainment and clothes shopping.

Although majority will continue to spend for Christmas this year, fewer households expect to spend less this year with the percentage falling from 32 per cent in 2011 to just 23 per cent this year, Mr Nicolaou said.

The average that West Australians will spend this Christmas is forecast at $1,381, a 36 per cent jump compared from last year, the survey suggests.

The survey likewise revealed WA households appear less interested to accumulate debt levels, as 40 per cent said they have a higher level of savings compared a year ago.