KEY POINTS:
Consumer confidence in the New Zealand economy plunged 18 points from the second half of 2007 to the first half of 2008.
This was the biggest drop in consumer confidence of any country in the world monitored, with the United States and the Baltic nation of Latvia coming
a close second with a drop of 17 points.
Only a handful of countries reported gains in confidence, with the greatest increase (5 per cent) taking place in The Netherlands, followed by Czechoslovakia, Russia, and Portugal (each up 3 per cent).
Fifty six per cent of global online consumers think their country is currently in recession and consumer confidence worldwide has fallen to its lowest level in several years, according to the Nielsen Global Consumer Confidence Index, which measures the confidence, major concerns and spending habits of online consumers in 51 countries.
The latest Index dropped to 88 - down six points in the last six months - and the largest single drop the index has recorded in the last three years.
"Consumer confidence fell in thirty-nine out of forty eight countries in the past six months, with New Zealand, USA and Latvia suffering the deepest declines," said Stephen Mitchell, Nielsen managing director.
Among the 39 markets recording a decline in consumer confidence, 15 fell by double-digits.
Twenty-three per cent of New Zealand consumers consider the economy their biggest concern over the next six months. Debt comes in second place at 16 per cent, followed by work/life balance (14 per cent).
Just four per cent cite job security and concerns about global warming rank near the bottom at two per cent.
"With high fuel prices, food inflation and other economic pressures, it's not a surprise that the economy is a top concern for many New Zealanders," said Mitchell.
"Manufacturers and retailers should take note - because clearly, value and competitive pricing is becoming more important."
* The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, reaches more than 28,000 Internet users in more than 50 countries worldwide, Approximately 500 New Zealand consumers took part in the April 2008 survey, which sought to gauge sentiment and confidence in the future of the economy, examine expenditure and saving patterns, and identify major concerns.
- NZHERALD STAFF