recession and its impact on customers nz

The 2024 Recession: Impact on Customers Who Rely on Cleaning Services

 2024 has ushered in a challenging economic climate marked by a global recession that has rippled across various sectors. As households and businesses tighten their belts, those who rely on cleaning services find themselves at a crossroads, balancing essential needs with shrinking budgets. In this blog, supported by statistical data and expert insights, we will explore how the recession affects customers who depend on cleaning services.

2024 Recession & Customer Behaviour At Glance:

Recessions typically lead to reduced consumer spending as households prioritize essential expenses over discretionary ones. According to recent surveys, over 60% of households have reported cutting back on non-essential services, including professional cleaning. This shift is driven by declining disposable incomes and increased financial uncertainty. 

Key Statistics on New Zealand’s 2024 Recession (as of June 6, 2024):

  1. Household Spending Cuts:
  • Economic downturns typically lead to decreased consumer spending.
  • The reductions were mitigated by a 2.4% increase in household consumption expenditures and a 2% increase in fixed asset
    recession in nz
    Recession in NZ


  • With higher living costs, including increased food, fuel, and housing prices, households are forced to reallocate their budgets to cover essential expenses.
  • This results in reduced discretionary spending on non-essential items and services. Inflationary pressures can lead to tighter household budgets as families prioritize necessities over luxuries.
  • The table below depicts the data on the expenditure of New Zealanders:
Real Purchasing Power


Month Percentage 
In the March 2024 quarter, compared with the December 2023 quarter: December 2023 Real gross national disposable income rose 0.9 per cent.
Real gross national disposable income per capita rose 0.4 per cent.
In the year ended March 2024, compared with the year ended March 2023: March 2024 Annual real gross national disposable income fell 1.0 per cent.
Annual real gross national disposable income per capita fell 3.5 per cent.


  • For household consumption data – you can check the Stats NZ website for the latest figures: https://www.stats
    recession and customers
    Recession and customers

  1. Employment and Wages:
  • While full data might not be available yet, recessions can cause:
    1. Increased unemployment rates.
    2. Stagnant or even declining wages.
    3. March 2024 Quarter Data:
      • Employment Rate:- 68.4% & underutilisation rate:- 11.2%

The table below provides data about how unemployment has resulted from the recession.

Quarter  Men  Women  Total
Mar-23 3.2 3.6 3.4
Jun-23 3.4 3.9 3.6
Sep-23 3.7 4.1 3.9
Dec-23 3.7 4.3 4
Mar-24 4 4.8 4.3

The above employment data is from Stats NZ:

  1. Service Industry Impact:
  • The latest recession is reported to have had a broad-based impact, affecting various industries. The service sector is likely impacted, but the extent may vary depending on the specific service.

Additional Resources:

Remember, these are just general trends during recessions. The specific impacts on household spending, employment, and service industries in New Zealand’s case might require further research using resources like Stats NZ.

Adjusting to New Realities


recession and cleaning services.
Recession and Cleaning services.

For households, the recession means making tough decisions about where to allocate limited resources. Here are some trends observed:

  • Increased DIY Cleaning: Many households are shifting to do-it-yourself (DIY) cleaning methods to save money. According to Nielsen data, sales of cleaning supplies have surged by 8%, indicating a move towards self-reliance.
  • Reduced Frequency of Professional Services: Customers now opt for monthly cleaning or special occasions instead of weekly or bi-weekly services. This shift helps manage costs without entirely foregoing professional help.
  • Selective Service Usage: Customers are becoming more selective, often choosing deep cleaning for specific areas (like kitchens or bathrooms) rather than comprehensive whole-house services.


Businesses, from small to medium enterprises (SMEs), are also feeling the pinch:

  • Budget Reallocations: Many businesses are reallocating budgets, often reducing expenditure on cleaning services. This is particularly evident in the hospitality and retail sectors, where maintaining a clean environment is crucial but not immune to cuts.
  • In-House Cleaning Solutions: Some businesses outsource cleaning and train existing staff to handle these duties to mitigate costs. According to the Equipment Manufacturers Institute, this trend is reflected in a 10% increase in the sale of commercial cleaning equipment.

Coping Strategies for Cleaning Service Providers

Cleaning service providers are adapting to the changing landscape by implementing several strategies to retain and attract customers:

  • Flexible Pricing Models: Introducing tiered pricing and discounts for long-term contracts can make services more affordable and appealing to cost-conscious customers.
  • Enhanced Value Propositions: Offering additional services, such as disinfection and sanitization, which have become more crucial during the pandemic, can justify costs and attract more business.
  • Customer Loyalty Programs: Implementing loyalty programs to reward repeat customers and encourage long-term relationships helps maintain a steady client base.

Take Action Today!

  1. Explore Our Packages: Visit our website or contact us directly to learn more about our Recession-Resilient Cleaning Packages.
  2. Book a Service: Schedule your next cleaning session today and experience the Premium Clean difference.
  3. Stay Connected: Follow us on social media for tips on maintaining a clean home and updates on special offers.

Contact Us

Stay safe, stay clean, and let Premium Clean help you maintain a beautiful and healthy home during these challenging times. Together, we can weather this storm.

To Conclude:

The 2024 recession has undeniably impacted customers who rely on cleaning services, driving a shift towards more economical and flexible solutions. While households and businesses navigate these financially strained times, cleaning service providers must innovate and adapt to meet evolving demands. By understanding these dynamics and responding proactively, the industry can survive and thrive amidst the economic challenges.

As we continue to monitor the economic landscape, it is clear that resilience and adaptability will be key for both consumers and service providers in weathering this recession.


Last Updated on June 25, 2024

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