BOSTON -- A survey of Massachusetts residents reveals most still believe the national economy is somewhere between bad and very bad, and they don't expect much improvement until late next year.

The telephone survey found that 88 percent of respondents said the national economy is "very bad" or "fairly bad." When asked if they expect the economy to improve over the next 12 months only 45 percent said yes. That number is up from 10 months ago, when a third of respondents believed things would start turning around now.

The cautious outlook leaves most guarding against spending, even as the holiday season approaches.

Half of those surveyed said they would spend the same amount on gifts this year compared to last year. An almost equal group, 47 percent, said they would spend less. Those numbers have held fairly steady compared to a year ago, according to the survey.

Women as well as respondents in the $35,000-and-under income bracket were the largest group to say they'd cut back on spending.

The survey, conducted by the Western New England College Polling Institute, concluded that adults with a high school education or less were most likely to hold a negative view of the overall economy, with 60 percent rating it "very bad."

Optimism that the economy will begin a rebound was highest among respondents with a college degree or an annual income of $100,000 or higher. More than half in that group believe there will be improvement within the next 12 months.

Political affiliation also drew sharp differences in outlook. Fifty-four percent of Democrats believed improvement could be expected in the next year. Only 28 percent of Republicans shared that outlook. Less than half of independents believe improvement would come in the next year.

When asked if respondents believed their personal financial situation would improve in the next year answers varied by age.

In the 30-to-49 age bracket, 34 percent of adults said they expect their financial situation to improve in the next year, which is up 10 points from a year ago. Twenty-four percent of adults 50 to 64 years old said their finances would improve. Seniors had the bleakest outlook, with 18 percent of those 65 or older responding positively when asked about finances.

A person's income level did not drastically affect how they felt about their financial situation. No income bracket polled above 35 percent when asked if they believed their personal financial situation would get better over the next year, according to survey data.

Western New England College polled 522 adults in Massachusetts randomly over the phone. The Polling Institute reported a 4 percent margin of error.