Kiwis more optimistic, but don't want to spend

Better results in a consumer confidence survey suggest nearly half of New Zealanders surveyed believe the country is out of the recession.

But another quarterly credit survey, also out today, suggests the economic pick-up has done little to shake savings sentiment.

Consumer confidence has improved three points over the last three months, compared to the first quarter of the year, according to an index by consumer research company Nielsen.

Its Global Survey of Consumer Confidence and Spending Intentions index measured at 93 for the survey’s latest round conducted between May 13 and 31.

“Kiwis are more optimistic about the economy, nearly half of New Zealanders believe we are out of a recession compared to a year ago when under a third thought this was the case,” Nielsen New Zealand managing director Rob Clark says.

"However, caution remains over job prospects, personal finances and spending intentions.” 

Higher utility bills are the major concern over the next six months followed by rising food prices, the survey of 29,000 online consumers in 58 countries – including 500 from New Zealand – reveals.

Another quarterly survey by credit company Dun & Bradstreet reveals the economic growth, low interest rates, falling unemployment and strong house prices and low interest rates are yet to shift the subdued financial intentions of consumers, with Kiwis planning to save more and reduce debt in the months ahead.

Some 39% of people say they are more likely to save money in the next three months compared to the same time last year, while 28% are less likely, according to Dun & Bradstreet's Consumer Credit Expectations quarterly survey.

Also, Kiwis do not plan to boost their access to credit in the next three months, with a decline in expectations for new credit card and credit limit applications despite continued low interest rates.

Dun & Bradstreet’s survey of 902 New Zealanders, aged between 18 and 64, suggests an attitude of credit caution and financial consolidation has been embedded among consumers after the global financial crisis.

"New Zealanders' focus on financial stability appears unlikely to shift in the short term," Lance Crooks, general manager of Dun & Bradstreet in New Zealand says.

"Despite the positive conditions and low interest rates, consumers appear reluctant to increase their use of credit and are instead maintaining the recent trend of saving money.

"New Zealanders' focus on financial stability appears unlikely to shift in the short term," Mr Crooks says.

Dun & Bradstreet’s survey was conducted from June 10-24.

gbond@nbr.co.nz