By Amy Looker
Results from the Nielsen Global Online Consumer Confidence Survey have revealed that consumer confidence has plummeted in the second quarter of 2011, with Australian households looking to cut costs across the board.
Australian consumer confidence nose-dived seven points in the second quarter of 2011, taking the country’s index to 103 points, down from 110 in quarter one, its lowest reading since quarter two in 2009.
Thirty-three percent of households surveyed said they are making cost-cuts by purchasing cheaper alcohol brands, while saving on gas and electricity (68 percent), cutting down on out of home entertainment (67 percent) and spending less on new clothes (65 percent) were the top three actions taken by consumers in order to save on household expenditure compared to this time last year.
“We haven’t seen this level of commitment to reducing household expenditure since the GFC began in late 2008,” said Chris Percy, managing director – Pacific, Nielsen Consumer Group.
“As pressure on family budgets continues to mount, worried consumers are constantly looking at ways to save on household expenses. This quarter has seen consumers cut back on everything – from alcohol expenditure and consumption to telephone expenses and from in and out of home entertainment to buying to cheaper grocery brands.”
“Restraint on household expenditure has become the norm for many Australian households and consumers have indicated that these cost cutting actions are set to continue even when economic conditions do improve,” said Percy.
The Nielsen Global Online Consumer Confidence Survey tracks consumer confidence, major concerns and spending intentions among more than 31,000 internet consumers in 56 countries.
