Economic commentary

October 22, 2025

Consumer stress is rising again after easing to a 2-year low on the back of falling inflation, but importantly, stress levels remain below the series average.

By NAB Group Economics

Though price dynamics continue to influence a range of spending behaviours, consumers were a little less restrained with their expenditure in the September quarter. This easing allowed households to spend more, though spending growth remains concentrated in specific areas, with a focus on value. Consumers are still struggling with a lack of clarity on the future path of the economy, contributing to the decline in overall sentiment. On balance, while 2 in 3 Australians now expect house prices to continue to rise over the next year, 1 in 2 also believe inflation, taxes and other Government charges will increase. Over 1 in 3 believe unemployment will lift and fewer expect interest rates to decrease.

For further details please see the NAB Consumer Sentiment Survey (Q3 2025) (PDF, 3MB)