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Despite more than 80 per cent of New Zealanders thinking unemployment will increase over the next year, most are not cutting back on spending, according to new research.
The survey of 750 people, carried out by UMR Research in late January, found 81 per cent of those surveyed thought unemployment would increase in the coming year, and 72 per cent thought the economy would get worse.
However, while there was a lot of concern about the economy, people did not seem to think they would be affected too much, UMR director Tim Grafton said.
"For instance, 72 per cent are concerned about the impact of the international economic meltdown on the New Zealand economy, but most (55 per cent) are not worried about losing their job."
Mr Grafton said the mood was starting to change though.
"In December, 52 per cent thought the economy would pick up in a year or less, but that figure is now down to 36 per cent," he said.
"People also think it will take longer for the economy to recover with 53 per cent now expecting it to recover in two-three years, but only 37 per cent thought that way in December."
Of those surveyed, 60 per cent said they had no plans to curb their spending, however, retailers were still expected to face a tough year with 39 per cent ready to cut back.
"Just where people are prepared to cut back varies a lot," Mr Grafton said.
"Only 24 per cent say they will cut back on booze, but 47 per cent say they will be spending less on eating out and going to restaurants and 42 per cent will spend less on entertainment."
The survey showed consumer goods were generally people's priority for cut-backs, with 54 per cent ready to save on them. This was followed by eating out (47 per cent), clothes and fashion (45 per cent), and entertainment (42 per cent).
Mr Grafton said dropping interest rates might provide some relief for retailers.
"Falling interest rates will be reducing costs for borrowers and this may buoy up some of the spending."
The New Zealand survey had a margin of error of plus or minus 3.1 per cent.
Across the ditch, Australians appear to be tightening their belts considerably more, UMR research late last year showed.
The Australian survey showed 61 per cent would spend less on consumer goods, eating out in restaurants and clothes and fashion, and 59 per cent would spend less on entertainment .
- NZPA
