Christmas trees still selling

— -- Americans don't seem ready to give up their Christmas trees amid a slumping economy, but they are downsizing to save money.

As unemployment hit a 14-year high and retail sales dip to the lowest in 35 years, Christmas tree sales are holding steady in the gloom, according to growers, sellers and industry analysts.

Chal Landgren, professor of forestry at Oregon State University, says Americans are buying smaller, cheaper trees. He expects sales to be in line with last year, based on reports from growers.

Last year, Americans bought 31 million natural trees, according to an annual survey by the National Christmas Tree Association. U.S. farmers sold $493 million in Christmas trees last year, the U.S. Department of Agriculture says.

"The year may end up the same or even a little better than last year," says Jeff Owen, who works with growers and is based at North Carolina State University's College of Natural Resources. North Carolina, which sold more than 5 million Christmas trees last year, is the second-largest grower behind Oregon, which sold 7 million.

"Consumers want to keep the tradition, even if other things go by the wayside," says Linda Gragg, executive director of the North Carolina Christmas Tree Association.

Linda Holt bought a tree this year even though she lost her job last year repairing speech devices for the hearing-impaired. Her unemployment checks ran out in March. "I can't imagine Christmas without a tree," says Holt, 52, who lives with her daughter's family in San Jose. "It's too depressing."

Instead, she's only buying half the presents she planned, and her family went for a smaller tree, a 4½-footer that cost $34.

In North Carolina, Owen says, retailers ordered fewer trees from growers because of the economy, then ran out and had to order more.

Artificial trees are selling, too, although consumers are buying cheaper ones, says Thomas Harman, director of the American Christmas Tree Association, which represents the artificial-tree industry. He says his business, Balsam Hill in Redwood City, Calif., is selling as many trees as last year, though revenue is down about 10% because customers are spending less on them. He estimates Americans buy 10 million artificial trees annually.