Aussies spending despite crisis

The global financial crisis won't stop a majority of Australian consumers from spending at the same rate as they did before the downturn.

According to a survey conducted by MasterCard, many consumers are still more likely to spend their money on dining out, entertainment, travel, fashion and accessories than save. Approximately 53% of respondents in Australia said they would not cut back their discretionary spending, despite the world wide credit crunch.

The figure is second only to the response from consumers in New Zealand (56%) and far exceeds the response from Chinese consumers (40%).

MasterCard Worldwide economic adviser for Asia Pacific Dr Yuwa Hedrick-Wong said although Australian consumers won't reduce their spending, they may alter the mix of what they spend.

"Consumers are spending 'smart' and their purchasing priorities are being shaped by strong precautionary saving," he said in a statement.

"While dining and entertaining, fashion and accessories, as well as personal travel remain the top priorities for Australian consumers, spending on auto and big-ticket item consumer electronics are conspicuously absent among their top three spending priorities."

Twelve per cent of Australian respondents said they do not consider savings to be important because they believe in enjoying life now as much as they could, saying they had no problems earning money.

The survey also reveals a stark contrast in spending and saving habits across the population.

Australia's under 30 single consumers and those that are divorced or widowed are the biggest spenders on fashion and accessories, whereas Australians who were over 30, married and earned over $40,000 were the most strongly motivated towards precautionary saving.