Australia: Consumer anxiety rises a little further in Q3 - NAB

NAB’s Consumer Anxiety Index for Australia increased slightly in Q3 to 59.5 points (58.8 points in Q2), underpinned by higher concerns over job security and government policy, notes the research team at NAB.

Key Quotes

“Consumer concern over the cost of living, retirement funding and health expenditure moderated.”

“Cost of living is still the biggest driver of consumer anxiety, and job security is still causing the least stress. But anxiety over our jobs has now risen to its highest level since late-2016.”

“Anxiety was highest for Australians in the lowest income group, house renters, women aged 30-49 and for consumers with children. It was lowest for widows, consumers living in Tasmania and men over 50.”

“Consumers were less worried about their household financial position in Q3 and its impact on their future spending and savings plans. Concerns about the general economic situation in Australia and its impact on future spending and savings plans were also basically unchanged.”

“Against this background, NAB’s overall spending indicator recorded its strongest result since this data was first compiled in Q3 2014. However, the net number of consumers that cut back their spending still out-numbered those that increased their spending.”

“Overall, more consumers said they increased spending on ‘essentials’ during the quarter, but fewer also spent less on ‘non-essentials’, particularly eating out, entertainment and personal goods.”