February 14, 2013
New MasterCard Research Suggests Money Really Doesn’t Buy Happiness
TWEET: http://bit.ly/Yc2bxw #MasterCard, #ConsumerConfidence
New Zealand, 14 February, 2013 – New Zealand consumer confidence is deteriorating according to the MasterCard Worldwide IndexTM of Consumer Confidence (MWICC).
The index, which tracks consumer sentiment for the coming six months (indexed to 100) shows Kiwi’s confidence levels have dropped 8.3 points to 42.7, reflecting a more pessimistic view of the world.
Asked about their six-month outlook across five key areas – the economy, employment prospects, the local stock market, regular income prospects and quality of life – Kiwis said the area they were most concerned about was quality of life.
Expectations around employment, the stock market and the economy were also down, while expectations related to regular income were up, providing the only positive change since the last half.
MasterCard New Zealand country manager Albert Naffah said despite their caution the majority of New Zealanders feel good about their income prospects for the next six-months.
“The way that impacts consumer mind-set is in a greater focus on financial planning, notably the choice between saving and spending,” Mr Naffah said.
“What I think is most interesting is that these feelings of financial security are not necessarily translating into a more positive feeling about quality of life which supports the age-old adage that money doesn’t buy happiness.”
The research highlighted that men are more positive in their outlook (index of 48.2) when compared to women (35.9) with the starkest differences in their outlook for New Zealand’s stock market (52.7 male / 27.8 female) and the economy (47.0 male / 33.3 female).
Interestingly, New Zealanders are more positive in our outlook (42.7) than our Australian counterparts (40.3), while our trans-Tasman neighbours are more bullish about their quality of life (36.1) and the stock market (36.1).
When compared to the rest of Asia/Pacific, New Zealand ranked 10th most optimistic out of 14 markets surveyed in terms of its overall outlook.
|Component||Current Status||Change from last half|
|Overall MWICC||42.7||Neutral -||-8.3||Some deterioration|
|Economy||41.3||Neutral -||-5.0||Stable -|
|Regular income||70.9||Optimistic||2.3||Stable +|
|Stock market||41.8||Neutral -||-9.9||Some deterioration|
|Quality of life||24.8||Very pessimistic||-15.4||Significant deterioration|
The MasterCard Worldwide Index of Consumer Confidence is based on a survey conducted between 7 November 2012 and 23 December 2012 on 11,339 respondents aged 18 – 64 in 25 countries. This is the 40th survey of Consumer Confidence conducted since 1993.
Respondents were asked 5 questions pertaining to their 6 month outlook on the economy, employment prospects, the local stock market, their regular income prospects and their quality of life. The results of their responses were converted in 5 component indexes which were subsequently averaged to form the MasterCard Worldwide Index of Consumer Confidence (MWICC) score. The MWICC Index score and the 5 component index scores range from 0 – 100 where 0 represents maximum pessimism, 100 represents maximum optimism and 50 represents neutrality.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.