Consumer stress is rising again with Australians wary about the outlook for the year ahead.

Household pressures are set to ease but until then the mantra for many consumers appears to be, “Show me the money”!

• The NAB Consumer Stress Index rose in the December quarter 2024 in part reflecting growing concerns over Government policies coming into an election year.
• Election results rarely have a material effect on consumer spending, but uncertainty is never good for consumer sentiment. Regardless of the winner, a sizable share of consumers will likely update their economic expectations based on the results of the election. Sentiment can also be buoyed once there is greater clarity around the policies of each party.
• Cost of living concerns also inched up and remain the biggest cause of stress, despite fewer consumers observing higher prices during the quarter. Many consumers are fatigued but continue to manage higher prices via cutbacks, drawing down savings, mindful spending and researching before buying.
• New research confirms significant numbers of Australians are unsure about the year ahead with the risk of a misstep and full-blown recession not ruled out.
• 1 in 2 consumers believe there’s more chance of recession and higher unemployment. 2 in 3 a further rise in inflation, 6 in 10 higher taxes & Government charges, and 7 in 10 more scams. And with growing uncertainty, 4 in 10 expect interest rates to rise. Most also expect higher house prices.
• NAB expects rate cuts by mid-year, providing room for an uplift in sentiment as the year progresses and more Australians ‘feel’ household pressures easing.

Read the full report here: NAB Consumer Sentiment Survey (Q4 2024)