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The NAB consumer stress index rose 58.5 points in the December quarter of 2024, up from 57.6 points in the previous quarter but still down from 59.5 points at the same time last year.
NAB’s Q4 Consumer Sentiment Survey indicates that this is driven, in part, by uncertainty over how federal government policies may change after the election. Six in ten Australians worry that taxes and other government charges will increase.
The cost of living remains the biggest cause of stress. The survey revealed where consumer concerns lie.
* 1 in 2 believe there’s a chance of a recession and higher unemployment
* 2 in 3 think inflation will rise
* 4 in 10 expect interest rates to rise
Many consumers feel fatigued by higher prices but are managing this with cutbacks, drawing down savings and mindful spending.
NAB expects rate cuts by mid-year, which should ease household pressures and lift consumer sentiment. Consumer stress may decrease further once the elections are over and there is clarity around federal government policies.
#accountant #consumersentiment #business
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