High employment keeps cost of living pressure at bay

National Australia Bank

NAB research today reveals that record employment rates are countering concerns around the cost of living.

The research, based on NAB’s Consumer Sentiment Survey, showed an easing of pressure on Australian

households to 55.2 pts in Q3 (56.1 pts in Q2) which is comfortably below the survey average of 58.6 pts.

NAB economists attribute the results to significantly high levels of employment across Australia, as stress

related to job security drops to a near four-year low.

With less than 100 days to Christmas, the research also revealed what Australians are expecting when it

comes to rising costs between now and the New Year:

• $59 extra a week is expected to be spent on groceries

• $35 extra a week is expected to be spent on fuel

• and gas, electricity, water bills are anticipated to be $76 higher a week.

Given these changing budget expectations, almost one in two Australians said they were being mindful or

careful with their money and altering their behaviour:

• Six in 10 (61%) Australians switched to cheaper brands or shopped around for cheaper products

• One in two (54%) were cancelling or cutting back on food delivery services and or on entertainment

(47%)

• More than a third (36%) have cancelled or cut back other subscriptions like newspapers, magazines

or audio books

NAB Group Executive for Personal Banking, Rachel Slade, said many customers were in a good financial

position thanks to high rates of employment but acknowledged some were feeling cost-of-living pressures.

“Christmas can be a stressful time when it comes to finances, but our NAB Assist team and expert

bankers are on hand to help anyone who needs extra support,” Ms Slade said.

“I encourage anyone struggling financially or worried about making home loan repayments to contact their

bank as soon as possible. We are here to help.

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