KEY POINTS:
New Zealanders say they are prepared to cut down on life's little luxuries - but not as much as other countries in the region.
And the ability to dine and drink out from time to time remains a priority for kiwis - recession or no recession.
44 per cent of New Zealanders are planning to cut back on their discretionary spending for the next 12 months, according to a survey carried out by MasterCard.
"While 44 per cent of New Zealanders are cutting back on discretionary spend, this figure is actually among the lowest in Asia Pacific, where we see (an average of) 77 per cent of the region's consumers indicating a cut back," said Stuart McKinlay of MasterCard.
The survey shows the top three areas of discretionary spend for New Zealanders for the next 12 months will be dining and entertainment (74 per cent), followed by personal travel (63 per cent) and fitness and wellness (62 per cent).
"It's interesting that Kiwis are choosing to prioritise their non-essential purchasing activities. This might reflect that people are continuing some activities as a treat or as a way to unwind in uncertain economic times," said McKinlay.
Taiwan (90.8 per cent), the Philippines (90.5 per cent) and Korea (85.5 per cent) reflected the greatest number of consumers looking to cut back, with consumers in China (60.1 per cent) and Australia (46.5 per cent) showing slightly more resilience along with New Zealand.
The survey also highlighted that 42 per cent of New Zealand consumers spend more than 10 per cent of their personal annual income on discretionary items.
Only one per cent of consumers indicated that they spend above 40 per cent of their personal annual income on discretionary items.
"While the findings show discretionary spend has dropped, a reasonable portion of people's income is still making its way into the economy," added McKinlay.
* The MasterCard Worldwide Index of Consumer Purchasing Priorities was undertaken to gain insights into consumers' savings behaviour. A total of 6,019 consumers across 14 markets were surveyed.
- NZHERALD STAFF