Fear of the recession is driving consumer behaviour more than an actual change in circumstances, with around a third of people admitting they have cut back on spending through concern of what may happen to their financial situation.
A new report from Mintel, British Lifestyles, finds that while only 43% of people have been personally affected by the recession, 71% have cut spending as a result of the current economic situation.
It seems that big ticket items are bearing the brunt of the cutbacks, with 35% not booking a main holiday in the next six months. Twenty-six per cent said the state of economy has stopped them from carrying out DIY or home improvements.
Seventy-four per cent said they would cut back spend on clothing and 66% would spend less on restaurants. However, just 26% would cut back on drinking at home, although 59% are spending less in the pub.