July 31 2009

Media Release

New Zealanders' rank cost of living as most serious concern, expect economic recovery within two years

New Zealanders rank the impact of the cost of living as the issue of highest concern to them and their families.

Within the next two years, 64% expect economic growth to start again and 52% expect unemployment to start coming down.

The latest national online ShapeNZ top issues survey, covering 2,251 people between Monday and Friday this week (10am July 27 to 10am July 31), finds 69% rate the cost of living as having the most impact on them and their families.

More people think the economy is going in the right direction rather than wrong.
However, the number who thinks the country is generally heading in the right economic direction has also slipped from a steady 53% in February and 54% in May to 44% in July.

The number saying the economic direction is going in the wrong direction is creeping up from 23% in February and 24% in May to 26% in July. More people are not sure about economic direction now (32%) than in February and May (24% and 22%).

Approval of the Government's management of the global economic downturn has slipped from 54% saying it was good to excellent in May to 43% in July. The number saying its management is poor to fair has risen from 39% in May to 49% in July. The number who doesn't know has remained at 7%.

They are also increasingly concerned the Government has not come up with enough new policies to successfully manage the economic recession.

The weighted survey, with a maximum margin of error of +/- 2.1%, commissioned by the New Zealand Business Council for Sustainable Development, also finds 44% of New Zealanders think the quality of life for them and their families has worsened during the past year, while 11% say it has become worse and 46% say it has stayed about the same.

The top 13 issues, rating a 4 and 5 on a scale of 0 to 5 (5 being most serious), in July are:

Cost of living 69% (70% in February)
Fuel prices 64% (77%)
Unemployment in New Zealand 61% (59%)
Health care 59% (66%)
The NZ economic recession 59% (66%)
Crime 56% (61%)
Government borrowing 55% (49%)
Interest rates 54% (56%)
Household finances 54% (62%)
Government deficits 51% (45%)
World recession 51% (62%)
Climate change 44% (59%)
Personal employment prospects 43% (45%).

Within the 4+5 most serious issue category, concern over domestic unemployment, government borrowing and deficits has risen. While they remain in the top 11 as serious, the level of concern over fuel prices, climate change and the world recession has fallen.

On when the unemployment rate in New Zealand will start coming down, 2% say in the next six months, 15% say within the next year, 35% say in two years.

Business Council Chief Executive Peter Neilson says the survey shows New Zealanders are worried about how they and their households will make ends meet, are increasingly concerned over the potential impact on them of Government borrowing and debt, and a large number feel their quality of life is slipping. They are also looking for more new policies to manage the impact of the recession.

ENDS

The Business Council believes sustainable businesses are profitable, contribute to social progress and ecological balance - and protect New Zealand's quality of life. The Business Council's 64 members jointly employ more than 88,000 people in managing resources, manufacturing, retailing and the service sector. Members contribute annual sales of about $59 billion to the economy, equivalent to 43% of GDP. The Business Council runs a national online survey panel, ShapeNZ, to allow public input on major issues. The panel has more than 14,000 members, is built from purchased lists and is representative of the population as a whole, compared with the 2006 census. ShapeNZ members register and provide demographic and previous party vote information to ensure results can be accurately weighted to reflect the New Zealand population. A report is available here on ShapeNZ methodology. Registration is also available at www.shapenz.org.nz.

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