The downturn in the economy is beginning to affect consumer spending and holidays are the first to suffer, a study by Mintel has revealed.
Almost three in every five adults has chosen to cancel their spending plans recently because they are concerned about their personal finance situation, the report claims.
Consumers are more likely to sacrifice their holiday than home improvements or adding to savings, with one in five adults delaying a family holiday because of money worries.
Mintel chief statistician Peter Ayton said: “People are starting to get a sense that things that are not as easy financially as they once were. In light of the credit crunch, borrowing has now become harder and we are likely to see even more people having to make sacrifices when it comes to spending in the future.”
The most common reason for belt tightening is the rising cost of day-to-day living, while others have been hit by large household bills or just felt they need to be more careful.
The economy is likely to be back on track in 2009/10 thanks to Olympics investment and the approach of the general election, said Ayton.
“The corporate rather than consumer sector will be the mainstay of growth towards the end of this decade and into the next,” he said.
The report called British Lifestyles – Winner and Losers in Changing Economic Times, conducted face-to-face interviews with 2000 people during February.