NAB’s Australian Consumer Anxiety Index gives some interesting insight into what drives low consumer confidence and it may not be what you think.
High profile job losses in Victoria, particularly in the car industry, have fuelled speculation that job loss fear is a key ingredient in low consumer confidence but in fact the major factor is the high cost of living. More than 40% of those interviewed said this was a major cause of anxiety with government policy running second (36.4%) followed by ability to fund retirement (31%). Just 16.7% of those surveyed listed anxiety over job security highly.
As expected the least anxiety was found in the younger and the older participants with the highest level evident in the 30-49 age group.