News Release

FOR IMMEDIATE RELEASE

New Zealanders Vow Not To Return To Spendthrift Ways After Recession

Auckland, 09 June 2009 — Many New Zealanders who have tightened their purse strings in the last year plan to keep them that way permanently, according to the latest Nielsen Global Consumer Confidence Survey.

The company found that (65%) of New Zealanders have cut back on household expenses and treats in the last 12 months, slightly lower than the global average of (70%).

They are staying at home more, buying cheaper groceries, using the car less, cutting back their power usage, eating less takeaways and wearing fewer new clothes. And almost all vow to keep up at least some of their prudent new habits even when economic conditions improve.

Executive Director Consumer Research The Nielsen Company New Zealand, Susanna Baggaley says a tightening economy gives consumers the opportunity to re-assess spending priorities.

“In times of financial uncertainty consumers re-evaluate their spending priorities and often discover the cuts they make don’t significantly impact their quality of life.

“As such, many people, post-recession will continue to cost-cut in areas deemed a low priority or not a necessity.”

The most common target for cuts is takeaway meals, with two-thirds (65%) of New Zealand’s belt-tighteners spending less on fast food. And (40%) say they’ll continue to reduce takeaway consumption from the when the recession eases.
More than half (54%) of the belt-tighteners are cutting down on out-of-home entertainment, and one-fifth (20%) say they will continue to spend more evenings in after the recession.

People are also taking a hard look at their supermarket bills – (63%) of those who’ve made cuts have switched to cheaper grocery brands in the last year. A third (34%) vow to make that change permanent. Gas and electricity are also being rationed, with two-thirds (63%) of the cost-cutters trying to decrease their bills, and more than half (55%) planning to keep that up after the recession.

And it looks as if the tills at the shopping malls will remain quieter – (60%) are spending less on new clothes, and (28%) say they will continue to resist the boutiques when economic conditions improve.

There were similar patterns in other areas of spending. Almost half (42%) of those who’ve cut costs are using their cars less often, and a quarter plan to continue to leave them in the garage when conditions improve.

But when it comes to holidays, even the cost-cutters in the survey aren’t prepared to stay at home forever. Although (39%) cut down on trips in the last year, only (9%) plan to make that a habit.

The motivation for the budget cuts seems clear. Most (83%) New Zealanders believe the country is in an economic recession, and the majority of those people (42%) think the bad times will last at least another year. Almost a quarter (24%) are more optimistic, predicting the recession will end in the next 12 months, while (35%) aren’t sure.

New Zealanders aren’t the only ones who’ve tightened their budgets in the last year. Latvia and Ireland have the largest proportion of cost-cutters per capita – (89%) and (86%) respectively. The Danish seem the least concerned about budgeting, with only (31%) saying they’ve made cuts, followed by the Finnish (39%).

Almost two-thirds (63%) of Australians have cut their spending in the last year – a similar proportion to New Zealanders – though fewer (69%) believe their country is in recession.

The Nielsen Global Consumer Confidence Survey polled 25,140 consumers in 50 countries, including 500 people in New Zealand in April this year.

About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com

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