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30 August 2006
Auckland
- New Zealand consumer confidence levels ranked seventh highest globally
- State of the economy the major concern and increasing in importance, with Kiwis focusing more on reducing debt and curbing discretionary spending
In the face of growing concerns about the state of the local economy, New Zealand consumers are still among the world’s most confident and ranked the seventh highest globally. According to research company ACNielsen’s latest Global Online Consumer Confidence Index, the New Zealand Index slipped nine points in the past six months to 114, however, it remained above the global and regional averages of 98 and 94 respectively.
Released today, these and other findings were part of the twice-yearly global ACNielsen Online Consumer Opinion Survey, the largest of its kind, which polled 21,780 people in 40 countries and more than 500 New Zealand participants on their perception of the local economy, job prospects, spending habits and major concerns.
The survey revealed that while Kiwis are still among the world’s most confident, growing economic concern might have driven the slight decline in the Index versus the previous six months. Almost one in two consumers (48%) cited the economy as being a major cause for concern – up six points versus November 2005, and now on par with the Asia Pacific regional average. Major concerns surrounding health (46%) and job security (22%) also ranked highly.
“It is apparent that while consumer confidence in New Zealand remains high, it could be vulnerable to factors such as the continuing high cost of petrol and a slowing housing market,” says Mr Steve Mitchell, managing director, ACNielsen New Zealand. “This may have a flow on effect to consumers’ discretionary spending as consumers typically react by tightening their purse strings when faced with uncertainty, and we’ve already seen a decline in spending on areas such as out of home entertainment, holidays, clothing and new technology.”
On job prospects and personal finances, Kiwis continue to be optimistic with over three in four (76%) saying job prospects over the next 12 months looked good or excellent, significantly higher than the global average of just 53 percent. Seventy percent believe that the state of their personal finances in the year ahead will be good or excellent, well above the global average of 57 percent.
The survey results reveal that there are a growing number of New Zealand consumers focused on debt reduction with close to half (45%) allocating their spare cash to paying off debts, credit cards and loans – a five point decrease from November 2005 but still the third highest globally. Other financial priorities that ranked highly among New Zealand consumers included saving (41%), holidays (33%) and out of home entertainment (31%), although all three areas had seen fairly substantial declines in the past six months (refer to Chart 1).
Chart 1: Once you have covered your essential living expenses, which of the following best describes what you do with your spare cash?
About the Survey
The ACNielsen Online Consumer Confidence and Opinion Survey is the largest half-yearly survey of its kind aiming at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe. The ACNielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend. The latest survey, conducted in late May/early June, polled 21,780 Internet users in 40 markets from Europe, Asia Pacific, North America to the Baltics.
About ACNielsen
ACNielsen, a VNU business, is the world's leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns. To learn more, visit www.acnielsen.co.nz.
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