1 Aug 2012

More cuts tipped in discretionary spending

1:16 pm on 1 August 2012

A survey by Dun & Bradstreet in New Zealand shows more than 65% of people are planning deeper cuts in discretionary spending.

A quarterly consumer credit expectations survey by the agency has found half of respondents are worried about their current financial situation.

Dun & Bradstreet's data shows people plan to spend less because of ongoing economic uncertainty both here and in the Eurozone.

New Zealand general manager John Scott says 66% of people say they are less likely to buy non-essential items.

Respondents say they are less likely to buy non-essential items which until now have resisted recessionary pressures, such as beauty treatments and new mobile phone contracts.

The survey indicates that families are increasingly vulnerable.

It says 56% of those with children are concerned about their current financial situation, 7% above the national average and 13% above the figure for couples with no children.

At the same time, more than a third of families surveyed think they'll have difficulties meeting their credit commitments, as compared to 24% of childless couples.

Dining out less

The Restaurant Association says people are responding to tough economic times by changing where and how often they eat out.

The association says a new survey conducted with American Express shows 33% of people are reducing the number of times they eat out.

Chief executive Marisa Bidois says 12% are visiting less expensive restaurants.