MORE than a third of shoppers in Northern Ireland say they plan to cut back on their Christmas spending.
And that has led to a call to retailers to consider how they can attract consumers and offer them value while keeping Christmas special.
The findings come in the latest quarterly UK-wide consumer sentiment barometer from business advisers PwC, which gauged 2,100 people's views on their disposable income in the next 12 months and if they expect their household will be better or worse off.
Overall, just under a third of adults say their household finances are ‘healthy’, a slight improvement on this time last year.
But at the other end of the scale, fewer than one in 10 say they are either struggling to make ends meet or have missed bills or loan repayments. That number rises to 15 per cent among 45-54-year-olds.
In Northern Ireland specifically, 33 per cent of consumers admitted they'd had already started their Christmas shopping by mid-September.
Just 7 per cent of adults here say they expect to spend more on shopping and celebrations this festive season, but 36 per cent expect to spend less this year, overwhelmingly due to the rising cost of living.
Cara Haffey, partner and private business leader for PwC Northern Ireland, said: “While consumer sentiment has much improved since this time last year, consumers are still feeling ongoing cost-of-living pressures.
“As we head into the Christmas period, shoppers in Northern Ireland are still keen to celebrate with their loved ones, but will be taking steps to spend smartly, including starting earlier and being cautious with their budgets.
“Last year shoppers did spend more than expected, so with falling headline inflation, there may yet be a last minute spending uptick.
“But retailers here will need to consider how they can attract consumers and offer them value while keeping Christmas special.”
Overall, PwC said the widest sentiment gap on record now exists between the most and least affluent socio-economic groups since its survey began in 2008.
Sentiment is still improving among over 55s and the most affluent, but it is falling in every other demographic group, particularly sharply among under 25s and the least affluent.
Almost identical to the last consumer sentiment survey, the less affluent and 35-54-year-olds remain under the greatest financial pressure, while retirees are the group reporting the most resilient household finances.
For example, 44 per cent of over 65s say they have money left at the end of the month for luxuries or to save, compared with 23 per cent of 35-44-year-olds.
