Problems in the housing market mean there are "less new walls out there" on which to hang art, but people are still redecorating existing homes, observed Robert Spooner, director of marketing for Robert Spooner Galerie. Still, "rather than $1,000 or $2,000 items, they will buy $100 or $200 items," he added.

At Swanson Christian Products, Director of Operations John McKinney reported "a higher demand of mid-priced gift items in the range of $10-$30, with a slower demand on the high-end gifts."

For DaySpring's vice president and general manager for the specialty division, David Jones, functionality rather than collectability has become important. Functional products with lower price points such as mugs and back-to-school items have been selling well, he said.

Meanwhile, Eric Mullett, Thomas Nelson's marketing director for gift books and backlist, said he believed gift books would benefit during the downturn. "Because the craft of gift books is foundationally grounded in encouragement and hope, I think there is some cause to think the category will benefit-especially with spot-on titles like Max Lucado's Fear Not Promise Book.

"The caveat, of course, is that consumers in need are looking for deep, meaningful connections, and so the bar on what they purchase could rise even higher to garner their dollar."

Read the full report in the January issue of Inspirational Gift Trends, a supplement to Christian Retailing magazine.