Financial News

• Brown dismisses housing crisis fears (09 04 2008 10:15)
• Mortgage hope offered by bank (09 04 2008 10:15)
• Consumer morale 'falls again' (09 04 2008 10:15)
• Bristol & West withdraws deals (09 04 2008 10:15)
• Retirees feel 'unhappy due to no longer working' (09 04 2008 10:15)
• Severn Trent to be fined £36m (08 04 2008 04:15)
• Brown to announce first time buyers help (08 04 2008 04:15)
• UK bank details 'for sale by thieves' (08 04 2008 04:15)
• Last 100% mortgage to disappear (08 04 2008 04:15)
• High earners 'shut out of market' (08 04 2008 04:15)

Subscribe!

L&G: We're feeling the pinch

British consumers are beginning to feel the effects of the apparently slowing economy.

Credit - whether for a card, a mortgage or a personal loan - is becoming harder to take out on the high street for many.

Inflation is also on the up, with food prices rising and most gas and electricity firms increasing their general tariff costs by around 15 per cent in recent months.

A new study from insurer Legal & General, however, also shows that Britons are beginning to "feel the pinch".

According to the firm's monthly MoneyMood survey, the percentage of people who said that they were "in the mood to spend" stood at just 23 per cent.

The spending downturn was also found to be sharper among the older age groups - with 18 per cent fewer 55 to 64-year-olds saying that they were "in the mood" compared with last month.

Julia Clayworth, wealth management head of marketing at Legal & General, said: "What is really interesting about this month's results is that it is clear that the reported economic downturn is not having a uniform impact.

"It is possible that the older generation have a clearer memory of previous recessions and are acting cautiously as a result of this - as people become more cautious with their spending habits, now is the time to really think about building a savings plan which could prove invaluable if the recession really takes hold."

Send this article to: