One in 10 do not know how they will afford Christmas 2024, survey reveals

Eva Osborne

One in 10 people have said that they do not know how they will afford to pay for Christmas this year.

However, another 10 per cent have said that they are planning to spend more this year compared to last Christmas.

The latest Consumer Sentiment Survey by the Credit Union shows that, overall, people are cautious about spending.

The survey also revealed that roughly half of Irish consumers will finance their Christmas spend from their income while one in three will use savings.

While one in 10 do not know how they will afford Christmas, six per cent plan to rely on support from family and friends.

The Credit Union estimates that ‘Christmas cost inflation’ will be markedly lower in 2024 than in recent years, with the 'cut back Christmas' of the last two years unlikely to be repeated.

Consumers outside Dublin, females, and those aged between 45 and 54 were groups who were more likely to say they plan to cut back on spending than others.

Not surprisingly, planned cutbacks reduced as the income profile of consumers rose, and those reporting difficulty making ends meet were three times as likely to say they plan Christmas spending cutbacks as those who do not face such difficulties.

Consumers based in Dublin, those on higher incomes, and those aged under 25 were more likely to be amongst the comparatively small number planning to increase Christmas spend this year.

Males were three times more likely to plan higher Christmas spending this year than females.

Economist Austin Hughes, said cost of living pressures on households are easing slightly.

"[People are] still struggling with a lot of uncertainty about what's happening in the world, still struggling with the rising costs of recent years," he said.

"But maybe [they are] taking a little bit of heart from the fact that inflationary pressures have eased a little bit back over the last while.

"There's been some softening in energy prices [and] borrowing costs."