Member Article

North East Cuts Down in Credit Crunch

This year’s financial crisis has prompted northerners to cut back on spending in many areas, a Newcastle research firm has discovered.

The company, Explain, conducted the research independently to explore how the region is handling the financial strain. It found almost a third of North East motorists are driving more slowly to save on fuel costs and half are searching hard for the best petrol and diesel prices.

It was also discovered that almost half of those questioned are cutting their Christmas present budget and a quarter will slash the cost of festive meals and parties. Spending on eating out, takeaways, theatre trips, cinema outings and DVD hire have also declined.

Spending on everyday goods has plummeted too, with almost half of those surveyed saying they had switched from more expensive brands to better value product ranges.

Explain’s research director Kim Davis said: “With the credit crunch sweeping the country, we wanted to gauge the effect it has had on the spending habits here in our own region over the last six months.

“A couple of weeks ago the national press reported on how the South East and Wales were suffering more than we are, but our research is showing that North East people are definitely being more cautious with where their money goes and looking at various ways to make it last longer, without impacting too much on their lifestyle.”

Explain works with big name clients including Northumbrian Water, the Yorkshire Building Society and North East Strategic Health Authority, but this is the first time it has carried out its own research, in a bid to get a clear insight into how the region is handling the poor economic climate.

This was posted in Bdaily's Members' News section by Ruth Mitchell .