A new indicator has emerged this Christmas of the excesses now generated by the Republic's economic growth - a boom in the sales of slimming machines.

As the ranks of the fat cats continue to swell in a buoyant economy, retailers have reported a leap in demand for deflationary festive presents such as exercise bikes and toning devices.

At Brown Thomas on Grafton Street in Dublin, a surprise best seller is the Slendertone Gymbody for Men, at £125. Not surprisingly, the electro-treatment gadget is being snapped up mainly by women, seeking the perfect gift for the man who, not so much has, but eats everything.

Evidence of financial excess is also plentiful this Christmas with strong sales in luxury goods. The combination of low interest rates, low inflation, rising employment and tax cuts has provided the basis for an expected fourth successive record festive selling season.

"Business is up at least 20 per cent," says Ms Caroline Barnardo, managing director of Dublin furriers Barnardo. "People really want quality this year and are staying away from the cheaper end; mink jackets at £2,000 to £3,000, for example, they are buying them rather than us selling them."

This season the shop has already sold six minks in the £10,000plus bracket and more than 50 priced at £5,000-plus. A new trend this year is "mum's buying for daughters", she says, adding the increase in demand has forced her to extend the shop's opening hours.

"For the first time ever we've decided to stay open on Sundays, even though it's against my principles."

Nearby on Grafton Street the jeweller, Weir & Sons, is enjoying a similar trade. "Buying for Christmas has started earlier this year and we're seeing a lot more new customers coming through the door," says Mr Neville McDowell, the shop's jewellery buyer. "More ladies are buying for themselves now, spending £8,000 to £9,000 on diamond watches and necklaces."

Best sellers this year are diamond rings and earrings set in white metal, ranging in price from £200 to £30,000. Gucci and Cartier watches are also popular at £400-plus.

"We have sold three diamond rings in the mid-£30,000s so far and hopefully by the time this article is published we will have sold a couple more," Mr McDowell said.

Some lucky loved-one, however, could be in for an even bigger surprise on Christmas morning if the shop's most prized asset, a diamond valued at £70,000 is sold. Mr McDowell says he is currently talking to one client who is seriously considering buying it. With deposit rates so low, valuables are being seen by many as not only Christmas gifts but wise investments.

Mr Philip McGuire, manager of the Pen Shop on Nassau Street, says his company has sold five £495 pens from a limited edition set since the beginning of December "with the buyers knowing they will double in price by the following year when they could sell them on tax free".

He says the average sale this Christmas has risen from between £20£30 to £100 while the average age of the purchaser has fallen. "We had a guy in this morning in his early 20s looking at Mont Blanc pens for up to £1,800," he says. The most expensive sale so far this year is a transparent blue Pelikan fountain pen bought in the last couple of weeks for £5,000.

According to Mr Declan Martin, economic director of the Dublin Chamber of Commerce, there are three macro factors driving the spending boom this Christmas: "An extra 75,000 people at work, falling interest rates and the expectation of them falling after Christmas and a general feel-good factor".

He estimates the average seasonal spend for a family of two adults and two children under the age of 12 is £1,200, of which £230 goes on food and drink, £440 on presents, £100 on toys, £100 on clothes and the remainder on everything from wrapping paper to the Christmas tree.

One trend this year, he says, is an increase in the number of "affluent teenagers with disposable income for disposable items. They're working in Eddie Rockets or the local Centra or pub, by and large are living at home and, while they might be throwing the mother a few quid, they have plenty of cash to spend on temporary items in sports shops, record stores and small gift shops."

He says Northern shoppers are also continuing to come to Dublin in large numbers, even though the exchange rate differential with sterling is not as great as it once was. "Northerners still find it attractive to come here for two reasons. First, because there is a greater variety of shops - you get Argos, Dixons, Marks & Spencer but also Arnotts and Roches, etc. - and, second, because within some of the multiples there is a greater array of goods here than in Belfast."

The influx of shoppers from outside Dublin, however, is not as significant as in previous years with December 8th, traditionally come-to-the-capital day, proving to be a bit of a let-down. Mr Jarlath Feeney, chief executive of the Galway Chamber of Commerce, says this particular tradition has now died thanks to improved shopping facilities in cities such as Galway where Shop Street was pedestrianised this year. "Opening hours have increased and there are a lot more shops available."

He says electrical suppliers seem to be doing best this Christmas. "Home computers are doing very well with demand being driven by the Internet and email. Last year there was a supply problem in the area but that's not the case this year."

Mr Michael Geary, chief executive of the Cork Chamber of Commerce, says sales this Christmas in the city have risen by 10-15 per cent. A primary reason for the boom, he says, is the recent investment of £40 million on upgrading Brown Thomas, Marks & Spencer and Roches Stores outlets.

Not everyone, however, shares the same analysis. Mr David Madden, managing director of the Cork TV and video chain, Madden, says sales have been slow, particularly in audio goods, while the boom in widescreen TV sales has been dampened by a shortage of the product.

That experience is borne out in Dublin where five of Brown Thomas' six DVD Panasonic VCR and TV sets, retailing at £1,495, have been sold. The shop is unlikely to have any more in store until the new year.

Another big seller in the electrical market is the stylish chrome-encased Nokia 8810 mobile phone. Mr Adrian Freer, manager of the Nokia shop in Dublin, says the new unit, costing £559 including a connection fee to Esat Digifone, is proving particularly popular as a corporate gift. There has also been a boom in sales of hands-free microphone and earpiece accessories fuelled, he says, by the controversy over possible health risks from mobile phone use.

Meanwhile, travel agents are reporting an increase in holidays as presents, especially sporting trips to cross-channel football games.

Treacy Tours & Events in Dublin says all-in deals, covering flights, accommodation and match tickets, are proving extremely popular with sales in Glasgow Celtic and Manchester United trips, at £190 and £245 respectively, leading the field.

According to the travel company, wives shopping for husbands are buying vouchers instead of risking booking the wrong match or wrong team. A wise move because, for many a man, tickets to see Rangers vs Motherwell at Ibrox coupled with a Slendertone Gymbody unit would be just too much to take on Christmas morning. Especially if his present to her is a £70,000 certified diamond.