Nielsen’s latest global Consumer Confidence Index for the second quarter of 2015 shows that confidence in the Pacific dropped significantly from the previous quarter, with Australia seeing a sizeable six point drop to 89 and New Zealand down three points to 99. While both markets experienced similar drops this quarter, the report shows that New Zealanders are more confident than Australians in all areas of consumer confidence.
Australians are increasingly negative about their personal finances, with a huge nine point drop from 57% to 48% in the second quarter. New Zealand also experienced a four point drop from the first quarter from 62% to 58% when asked whether they have a positive outlook on their personal finances.
Our outlook on job prospects is also down, with two thirds (66%) of Australians and two-fifths (41%) of New Zealanders signalling a negative viewpoint. Likewise, a majority of Australian (60%) and New Zealand (53%) consumers believe it isn’t a good time to buy the things they want or need.
Weak income growth, a slump in the Australian dollar and rising cost of living which is leaving more consumers with no spare cash are all contributing factors to the latest economic confidence declines. That being said, seasonality is also a contributor, as the winter months typically deliver below average results, and while the quarter is notably down compared to the start of the year, consumer confidence is up four points compared to the same period last year.
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The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted May 11-29, 2015, and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.