Our worry list - jobs, costs, savings

Bill English says Kiwis should be feeling positive after two quarters of economic growth. Photo / Mark Mitchell

New Zealanders worry most about the cost of living, their savings and whether they will keep their jobs, a survey shows.

But Deputy Prime Minister Bill English says people should go into the Christmas break feeling positive after two quarters of economic growth.

GDP data shows the economy grew 0.2 per cent in the September quarter and June quarter growth was revised up from 0.1 to 0.2 per cent.

For the year to September, the economy shrunk 2.2 per cent against the year to September 2008.

Mr English said that although growth was weak, the figures were positive news and New Zealanders could go into the Christmas break feeling more confident about the economy and next year.

"Two quarters of growth following five quarters of contraction reflects a stabilisation in the global economy and the Government's sound economic management," he said.

Mr English said the figures followed Treasury's updated forecasts which showed unemployment was likely to peak sooner and at a lower level than previously thought and 64,000 fewer jobs than expected would drop out of the economy.

Meanwhile, a survey by Visa showed New Zealanders' top three concerns were the cost of living (48 per cent of respondents were very or extremely concerned), increasing savings (44 per cent) and job security (44 per cent).

Less of a worry were fluctuating interest rates (18 per cent of respondents were very or extremely concerned), the value of investment portfolios (23 per cent) and mortgage or loan interest rates (24 per cent).

Visa's New Zealand manager in New Zealand, Sean Preston, said people were being pragmatic as they looked to next year by focusing on the financial concerns they could manage.

"Consumers are looking at their expenses, their savings and their job security to see how they can manage these, rather than focusing on longer-term or more macro-economic conditions such as exchange rates, interest rates or investment portfolios," he said.

"For Kiwis the level of personal debt has become a level of concern and ranks in the top three things which they feel will affect their personal financial situation."

He said one way in which people were getting more value out of their money was finding the most economical way to spend it.

The Visa eCommerce consumer monitor showed 89 per cent of respondents said they had shopped online in the past 12 months.

Top reasons for using the internet to make purchases were being able to shop any time (80 per cent), being able to compare prices and save money (79 per cent) and being able to find and compare products easily (78 per cent).

Asked about the prospects for the local economy, 39 per cent of those surveyed said they were more concerned than they were six months ago about the effect of the global financial crisis on the New Zealand economy.

Forty-five per cent said they felt about the same and 16 per cent were less concerned than previously.

IMPACT OF CRISIS ON THE NZ ECONOMY

*39 per cent More concerned
*16 per cent Less concerned

NOT SO BIG CONCERN

*24 per cent Interest rates for mortgages or loans
*23 per cent Value of investment portfolios
*18 per cent Fluctuating interest rates45 per cent Feel the same way

BIG CONCERN
percentage of people extremely worried or concerned)

*48 per cent Cost of living
*44 per centIncreasing savings
*44 per cent Job security

source: Visa NZ survey