Shoppers expect to spend less this Christmas season, as they simply can't afford to splash out as much as usual due to the ongoing cost of living crisis.
According to the Credit Union Consumer Sentiment Survey, over half of all consumers expect to have less money to spend on Christmas this year.
It is estimated that this is likely due to increased household bills, like electricity and heating, which have drained many people's pockets of the extra cashflow usually reserved for spending during the festive season.
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According to The Independent, economist Austin Hughes said: “As buying plans remain subdued, the general tone of the sentiment survey for November and responses to the special question asked this month hint at a Christmas of caution rather than cutbacks in household spending.”
Data in the survey shows that people aged under 35 years old plan to spend more than older consumers.
The consumer sentiment survey has seen some positive changes over the past couple of months, leading experts to believe shoppers are becoming more flexible with their spending.
It is thought that by January, consumers will begin to contribute to more positive spending trends.
The survey found that just over half of Irish shoppers expect to have less money to spend than last Christmas, while one in 14 consumers say they have more to spend.
The outcomes are slightly more positive than the same period last year, when the cost-of-living crisis was being felt the harshest, with rapidly accelerating food and energy prices.
Whilst many continue to struggle with the rising cost of electricity and heating bills, the survey suggests that there have been improvements since last year.
The main sections that spenders plan to cut back on this festive season include presents and entertainment.
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