The cost-of-living crisis is impacting consumers and proving to be the Grinch who stole Christmas for many households, as people plan to tighten the purse strings despite the looming festive period.
Fears of job losses, along with rising prices, have led to shoppers becoming more cautious about spending, despite this time of year traditionally being a period of splashing out.
The latest Credit Union consumer sentiment survey showed that November has seen a drop in the consumer sentiment index, which edged down to 45.3 in November from 46.1 in October, suggesting "a very nervous Irish consumer", who remains "very downbeat about the broad economic environment".
The survey found that only 5% of consumers have more spending power this Christmas than last year, while 61% have less money for the festive season.
The survey also highlighted the measures some households will be forced to go to this Christmas, as around half of Irish consumers will fund Christmas spending from income.
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One third say they will use savings, while the remaining 20% will either borrow or don't know how they will fund Christmas spending.
The report states that while households are planning to cut back on spending, it is mainly due to increased caution as opposed to increased restraints - forecasting that Christmas spending is "careful rather than cancelled".
It stated: "Although many - if not most - Irish households will be cautious in relation to their Christmas spend this year, across the economy as a whole, this doesn't necessarily imply a frugal rather than festive season.
"Although spending power has been notably dented, numbers at work are set to be materially higher than a year ago, the population has increased significantly and Government financial supports are notably larger and now reaching most households."
Recent job losses across the tech sector have also knocked consumer confidence, as Irish consumers have become "notably more worried about job prospects".
Report author Austin Hughes said: "As income tax receipts remain healthy and unemployment data continue to track near historic lows, this significant downgrade of the employment outlook can be attributed to a flurry of layoff announcements in a number of tech companies through the survey period that raised broader concerns regarding the outlook for the tech sector as a whole."
