Recession-hit Irish consumers keep ‘down with the Jones’s’.

As the jaws of the recession lock tighter, it appears that Irish consumers have stopped trying to out-spend each other and this season's latest trend is "Keeping down with the Jones's".

In Dublin, Ireland MEC Research released today reveals that although consumer confidence remains low and people are cutting back on spending, the cut-backs are primarily on the more visible items such as cars and clothes. Irish consumers have moved swiftly away from the conspicuous purchases that embodied the Celtic Tiger years, such as cars, clothes and eating out. However, we are refusing to part with essential entertainment items such as our Satellite TV and foreign holidays.

The vast majority of those surveyed described themselves as, ‘concerned or very concerned' with the current recession in Ireland whilst 43% felt they had less disposable income than this time last year. This is probably reflecting the current swathe of salary cuts that are doing the rounds.

Yet when asked how they felt about their job security, 40% said they felt secure. This can either be attributed to the "It won't happen to me" syndrome or a belief that a recent pay cut has secured their job. While the majority of those surveyed agreed that they were deferring major purchases, an incredible 82% said they would be taking a foreign holiday in 2009. Most also said that they would not be canceling their satellite or cable subscription, decreasing the amount of credit cards that they have or switching their mobile phone subscription to a pre-pay option.

As impact of the recession gains traction, cutbacks appear to be primarily in areas where the purchase is highly visible, such as the ‘09 car in the driveway. So as the Celtic Tiger encouraged conspicuous consumption it appears ‘Credit Crunch Ireland' is inspiring invisible secret spending. This could explain why many Irish consumers are hanging on to their essential entertainment items such as holidays and home entertainment, albeit discreetly

So while externally, we're doing what we can to keep down with the Jones's, we're not quite ready to give up the Celtic ghost just yet