As the U.S. economy continues to sputter under high gasoline and food prices, consumers may be extra cautious about their Father's Day spending.

The National Retail Federation expects the higher costs at the pump and at the grocery stores to cut into Father's Day budgets. Its 2008 Father's Day Consumer Intentions and Actions Survey indicates the average consumer plans to spend about $94.54 on the holiday, about $4 less than in 2007.

Grant Monahan, spokesman for the Indiana Retail Council, said he is "a little more positive" about Father's Day gift spending than the National Retail Federation.

"No doubt that higher prices for food and gasoline are giving every Hoosier family a headache, but when it come to this type of holiday, people find wiggle room in their budgets to make it memorable," he said.

"Father's Day is an important retail holiday -- not as big as Mother's Day or winter holidays -- but nevertheless, people use it to remember their dads and I don't think that will change. People will find a way. Times are tougher, but people will step up to the plate."

Mary Beardsley of Hammond said she's spending more than usual for Father's Day. The special cologne the former English teacher is buying for her long-time boyfriend is expensive but "he really deserves it."

"We're doing fine," Beardsley said. "The economy isn't affecting us because we careful and don't overspend. If we don't have the money for something, we don't buy it."

Ginger Porter of Munster is among the shoppers who plan to spend less on Father's Day gifts this year.

But Porter said she's able to buy more by watching sales and using coupons.

"We're still shopping, but we're finding a lot of things that are on sale."

To attract shoppers, retailers are advertising Father's Day sales on items pegged to the celebrant's wants and needs, from sporting goods and sportswear, to bass boats, flat-screen TV's, power tools and power mowers. Total spending for Father's Day is projected to reach $9.6 billion, according to the retail federation, which makes Father's Day an important one for retailers' bottom lines.

"It comes at a time of the year that's after Easter and after the late-spring surge of outdoor expenses," said Monahan, of the Indiana Retail Council. "As we head into summer, Father's Day is a good kickoff for the summer shopping season."

Father's Day is second only to Christmas for the sale of men's clothing and furnishing, said Ralph Fernandez, divisional merchandise manager for Bon Ton Stores Inc., the parent of Carson Pirie Scott and Co.

"Father's Day is a big event for us," said Milwaukee-based Fernandez, who run's Bon Ton's men's sportswear division. "It's our holiday for the spring/summer season."

Dale Tanis, owner of Highland's Zandstra's Store for Men, said his 45-year-old "better men's wear" shop always does good business for Father's Day and 2008 is expected to be no exception.

"So far, it's been up from last year, and last year was OK," Tanis said. "Father's Day traffic starts as soon as Mother's Day passes."

Tanis has been a bit more cautious in his inventory purchases because of the economy and the fact it is a presidential election year.

"In my experience, people become a little tentative before the November election," he said.

Plus, Tanis believes people in Northwest Indiana are more optimistic on the economy than those in other areas because the region's steel industry is making record profits.

"Steel's been going great," he said. "We've been through a lot, but steel survived and that part of the world is pretty healthy. Not everyone here works in steel, but it's (steel) the big rock in this pond."