Consumers are cutting back their spending, report shows

Date: 10th June 2011

Small businesses operating in the UK's retail sector could be set for challenging times over the coming months, it has been suggested.

According to a recently-published report by AXA, British consumers are cutting back their spending as a result of financial pessimism.

Figures from the study revealed that up to 20 million people across the country have made "significant spending cutbacks" since the end of last year.

Eric Lhomond, AXA UK's chief investment officer, said: "These figures reveal a concerted effort by British consumers to claw back some financial security in the face of a significant drop in optimism that we found across all demographic groups.

"The result is that we are busy paying off debts, reining in unnecessary spending and clinging onto financial products to protect or grow our assets."

AXA's study also showed that 25 per cent of consumers have used their savings to make ends meet over the last three months.

Posted by Emily Smith