More interest rate relief may be in sight but most New Zealanders are feeling the pinch from other household costs leading up to the festive season this year, as spending plans for the holiday period remain at similar levels to 2023.

The latest consumer survey of 1000+ New Zealanders by MYOB, shows the cost of food/their supermarket shop (70 per cent), utilities (45 per cent), and insurance (36 per cent) account for the top three pressures on household budgets.

While 30 per cent are feeling the heat from rent prices and almost a quarter  say that their mortgage is creating pressure on their budget, another drop in the Official Cash Rate (OCR) this week is unlikely to stir significant additional spending in the run up to Christmas.

Sixty per cent of those polled said a cut to the OCR wouldn’t make a difference to their budget for the festive season, however one-in-10 said their spending would increase, while 16 per cent are unsure if they would change their spending plans or not.

“It’s understandable many Kiwi consumers will be feeling like it’s a repeat of last year, as the silly season gets underway for 2024,” said MYOB Chief Customer Officer, Dean Chadwick.

“Purse strings remain relatively tight as costs continue to bite, and subsequently, most New Zealand shoppers (61 per cent) are feeling some degree of stress or concern around their finances for the festive season.

“Despite the continued cautious approach from consumers, our data shows overall spending intentions on core festive season purchases such as gifts or food and drink, remain relatively strong.”

Spending plans, shopping strategies, and stocking surprises revealed.

In terms of how New Zealanders’ festive season budgets are likely to be spent, MYOB’s poll shows Kiwi shoppers estimate they’ll spend an average of $468 on food and drink, which is 10 per cent less ($47) than last year’s average – a potential win following falls in inflation over the past 12 months.

When it comes to gifting, those surveyed expect to spend an average of around $163 per person, however 50 per cent plan to spend less than $100 per person. Encouragingly, for most New Zealanders (56 per cent ), the amount they expect to spend on presents is on par with last year, while nearly a quarter (24 per cent ) say they will be spending less.

So what gifts will be exchanged between families and friends this year? Clothing or shoes remains top of the list (41per cent), followed by gift cards or vouchers (38 per cent), food or drink (34 per cent), toys (32 per cent) and money cards or cash (24 per cent).

“While a small portion of Kiwis have already done all their festive season shopping, foot-traffic around the local shops is likely to have risen this month, with almost a quarter of those we surveyed planning to make most of their holiday season purchases at some point in November and just over one-in-10 aiming to spend-up on Black Friday,” said Chadwick.

“However, there’s certainly no big break in the tradition of a last-minute rush. With a quarter of those polled holding off until December to do their shop, retailers could see the festive boost continue with more foot traffic still to come.”

As for where the tills will be ringing the most, businesses in local malls are once again likely to see the most footfall, as 39 per cent of New Zealanders flock to retail shopping centres to purchase most of their gifts, while nearly one-in-five will aim to buy from local New Zealand businesses for most of their purchases.

Overall, traditional bricks and mortar stores are holding their own, with just 14 per cent of those surveyed planning to do most of their shopping online, however trading could be tough for department stores with just 5 per cent of respondents planning to purchase most of their gifts from one of these retailers.

“The tail end of the year is a key trading period for many local businesses as consumers prepare for the holiday season, and retailers are an important part of this tradition. For those still yet to do their Christmas shop, now is a great time to consider shopping local and supporting the small and medium businesses in communities across the country. Doing so could deliver a merrier Christmas for all.”