NAB has today released its quarterly consumer anxiety index, which fell to 60.1 points in the December quarter, down from 62.3 points in the September quarter (see next table).
Cost of living and government policy are claimed to be the biggest causes of anxiety for Australians, whereas perversely job security is causing the least stress, despite the steadily deteriorating labour market.
However, the reduced levels of stress are unlikely to translate into improved retail sales, according to NAB chief economist, Alan Oster:
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“The anxiety index is better but it is mostly about non-discretionary spending”…
“Specifically, changes in spending behaviour continue to be dominated by ‘essentials’ such as utilities, paying off debt, transport and medical services”…
“What does this translate to for retail sales and consumption? Things are not good.”
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
