A MAJORITY OF Irish consumers are heading into the festive season with less money to spend than last year, with many planning to cut back on gifts and entertainment.

According to the latest Credit Union Consumer Sentiment Index, 52% of consumers expect their Christmas spending power to be lower in 2025 than in 2024, up from 47% last year.

Contrasting this, less than one in ten consumers (9%) say they will have more to spend this year compared to Christmas 2024.

As a result of the tighter purses this Winter, 53% of households plan to cut back on Christmas entertainment spending, while half of those surveyed intend to spend less on gifts.

The survey also highlighted how households plan to fund their festive spending.

42% of those surveyed said that they will rely on their income, down from 47% last year.

Meanwhile, 37% will use their savings, 9% will borrow money to fund Christmas spending, and 5% will turn to family or friends for support.

Those reporting difficulty making ends meet are more than five times as likely to borrow compared to those managing comfortably.

Economist Austin Hughes said that the main factor weighing on the mood of Irish consumers of late is “a strong sense of continuing pressure on household spending power”.

Rising food and energy costs mean that so-called ‘Christmas inflation’ will be higher than last year, largely driven by food price increases, though the Credit Union says this will stay below the peak levels seen in 2022 and 2023.