Irish plan to splash the cash at Christmas

IT CAN pilfer our pockets, raid our reserves and strip away our sovereignty but there’s no way the Irish are going to allow the economic crisis become the grinch that steals Christmas.

For despite reining in spending for a fourth consecutive year, households here will still splurge more on festive food, fun and presents than in any other country in Europe.

Average planned expenditure per household over the Christmas period is €943 — 40% more than the European average and almost four times the €260 our frugal neighbours in the Netherlands expect to spend.

Budgets are down 7.4% on last year and a belt-tightening 34% on the last of the boom years in 2007, but only Luxembourg and Switzerland come close to our enthusiasm for becoming personal Santas, budgeting for spending of €923 and €841 respectively.

All the rest of the 15 countries examined in the survey by business and financial consultants, Deloitte, keep their spending well below €700. Households in Greece and Portugal, the two countries with which Ireland is most commonly compared in terms of economic woes, are planning to spend a modest €319 and €463 respectively.

Richard Howard of Deloitte said retailers would be encouraged by the fact that the drop in spending by Irish households this year was not as dramatic as the 10.6% decline last year.

“Through the last number of years, it has been abundantly clear that despite the fiscal pressures they face, the desire to embrace Christmas and enjoy the festivities has remained strong.

“That said, the prudence and increased frugality observed in previous years remains a feature of Irish spending — 59% of respondents identified that the main reason for spending less is the economic downturn and the belief that it will get worse and 33% indicated it was because they are in debt.”

The survey also found that the majority of Irish consumers believe the economy is in recession, despite the moderate growth achieved this year.

However, the recession is one of the forces spurring on spending, with the main reason for loosening the purse strings being the desire to have an enjoyable time and escape thoughts of the economic situation.

However, they do intend being more savvy about their spending this year, putting practicality, quality and value for money top of their shopping list when it comes to choosing presents.

Gift wrapped

What we want most:

Books: 52%

Cash: 52%

Gift vouchers: 45%

What we buy most

Cosmetics and perfume: 64%

Chocolates: 55%

Beauty care and spa treatments: 54%.