Consumers planning to spend less - not surprising

Media release

Newmarket Business Association

7 July 2009

Mastercard says NZ consumers planning to spend less but that’s not surprising

The MasterCard Survey out today which showed that found that 46% of New Zealand consumers are planning to decrease their discretionary spend for the second half of the year compared to what it was in the last six months is no real surprise, says the head of Auckland’s leading retail district.

“The fact that consumers are planning to spend less is no real surprise given all the doom and gloom out there. Let’s not forget that the dairy prices for the coming season look gloomy, unemployment in the United States has hit 9.5%, while others are predicting 60,000 job losses across New Zealand in the next 12 months. It’s no wonder the consumer has got gun shy,” says Cameron Brewer, general manager of the Newmarket Business Association.

“Having said that, most retailers in Auckland remain positive for the medium and long term. This is helped by the fact that the Auckland region can expect enormous population growth within the next couple of decades. Auckland will be home to two million consumers by about 2030. According to Statistics New Zealand’s official figures we’re growing by about 150,000 people every five years – that’s more than the size of Dunedin or Hamilton. Such growth brings an underlying confidence that other places don’t have,” said Cameron Brewer.

Ends

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