New research on Irish consumers has found that some 67 per cent of people are now more conscious of their finances amid rising living costs.
The Mintel Ireland survey, Irish Lifestyles 2008, reports that Irish consumers are starting to feel financially squeezed and that many are preparing for major lifestyle cutbacks.
Belt-tightening focuses on key lifestyle areas such as entertainment and eating out, with 64 per cent of people planning to eat out less often and 51 per cent intending to cut back on treats for the family.
Moreover, around 42 per cent are prepared to cut back on grocery bills and other household items.
Among respondents, 60 per cent indicated they would buy fewer new clothes, shoes or jewellery, and 55 per cent would cancel DIY and home improvements.
Nevertheless, people will still find the money to go on holidays, said Julie Sloan, head of research for Mintel Ireland Ireland, said. "The prospect of cutting back on holidays will be a major shock to the system and a step too far for many consumers.”
The rising cost of living has been fuelled by higher utility bills and a tightening of credit conditions.
Recent figures showed retail sales fell in March, the second month running, as consumer confidence in the economy fell further, resulting in a 2.1 per cent decline in the volume of sales compared with the same month last year
Retail sales fell for the first time in four years in February, but economists described the steeper rate of decline in March as "very disappointing".
A 9 per cent annual drop in car sales dragged down retail sales in March, according to the Central Statistics Office.
