Financial concerns still increasing, however
The National Australia Bank (NAB) Australian Wellbeing Index showed slight improvements in the third quarter of 2023, but the figure remains well below the survey average.
Australians have reported higher wellbeing as more Australians grow accustomed to ongoing pressures. However, financial concerns are still increasing, particularly among lower income earners. Cost of living remains the primary worry for all Australians, and anxiousness has been on the rise, according to the survey.
Homeownership has been correlated with higher wellbeing, with Australians living in their own home or apartment reporting significantly higher wellbeing than renters. Homeowners have reported much higher levels of life satisfaction, life worth, and happiness and lower levels of anxiety.
Living costs continue to pressure Australians
The NAB Household Financial Stress Index looks into the influence of finances on the wellbeing of Australians. For the first time in six quarterly surveys, the index fell in Q3. Many Australians appear to be growing more accustomed to the pressures of rising inflation and interest rates, making deliberate spending tradeoffs to manage household spending and support their lifestyle.
Cost of living remains the primary detractor from wellbeing for most Australians, with about six in 10 Australians reporting stress due to living costs. Other key detractors are debts, unfortunate events such as victimisation or abuse, lack of time, mortgages, and substance use.
According to the survey, the deterioration in housing affordability and rising rents add to the cost of living pressures Australians are experiencing. Deposit metrics also indicate a weakening in accessibility, with the time to save for a deposit reaching very high levels.
Australians aged between 18 and 19 have reported issues with mental health, work, friendship, and study. Meanwhile, those over age 65 find the political climate and international conflicts to cause them stress.
Men are more likely to report better health outcomes than women in all areas, and particularly in terms of emotional and mental health.
The NAB predicts consumption growth to soften in the second half of 2023 and expects below trend GDP growth of 1 to 1.5% in 2023 and 2024. Labour market is expected to remain tight while unemployment is expected to rise to 4.9% through 2024 as labour demand slows with population rate increasing, according to the report.
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