Many Brits too scared to spend
May 9, 2009 by admin
Filed under News, News-Credit-Cards
It has been revealed in a recent report that many people in Britain are too scared to spend money, with a third of Brits having scared themselves into spending less.
Seven in ten consumers have told retailers that they have had to make spending cutbacks because of their fears over the financial situation and the future of their jobs. Almost half of them said that they were scared because they knew that they could face a future without a job or a home.
It has been predicted by retail analyst firm, Mintel, that consumer spending will continue to fall dramatically this year, with households trying to cope with the deep recession, job losses, and loss of income.
Similar research was carried out two years ago, but painted a very different picture with many consumers enjoying the high life by spending money on holidays to far flung destinations, dining out, shopping, and more. This report has shown just how dramatic the turnaround has been.
One official from Mintel said: ‘We have seen a tremendous turnaround in consumer spending in the past six months, since we started seeing big, big problems in the economy. Fear alone can cause major spending adjustments. A significant proportion of adults have cut back on their spending not because they have to, but mainly through fear of how the recession might affect them.’
He added: ‘These adults haven’t personally been affected by the recession, although they may know someone who has. In these difficult times, it is evident that consumers are changing their spending behaviour and adapting, whether or not it is necessary.”
Tags: recent report, future, holidays, savings, spending, fear, turnaround, analyst firm
