By Chris Harris

The drop in spending during the latest January transfer window proves that clubs are choosing a more cautious financial approach, according to Arsène Wenger.

This time last year sizeable sums were being spent with Fernando Torres and Andy Carroll fetching particularly large fees, while last summer's transfer window was also busy with Arsenal among the most active clubs.

However trading figures were down year-on-year from £225million in January 2011 to £29million going into this month’s deadline day and Wenger believes it is a response to the global economic downturn.

"The figures show you [that there is more caution]," said the Frenchman.

"You must say as well that you had big transfers last year with Torres, Carroll and David Luiz. This package alone was about £100million, but still there is a significant difference because we are in a recession period and everybody suffers.

"I don't know if you have seen the numbers in Europe but there are 1.6bn Euro losses [among football clubs, according to a Uefa report], that's not debt but losses.

"That is absolutely amazing. That means tomorrow if you had to stop your activity, half of Europe would be bankrupt.

"It means that football has to respond and I don’t know if financial fair play will come in, but it looks like economically the whole of Europe is becoming a bit more cautious."

Copyright 2014 The Arsenal Football Club plc. Permission to use quotations from this article is granted subject to appropriate credit being given to www.arsenal.com as the source 31 Jan 2012