NAB said the findings point to consumers adjusting behaviour rather than withdrawing from spending altogether, a pattern mortgage professionals may note as borrowers seek savings elsewhere while keeping up with housing-related costs.
“Households are clearly under strain, but what’s striking is how proactive people are being,” said Dean Pearson (pictured right), head of behavioural and industry economics at NAB. “Rather than simply switching spending off, consumers are shopping around, switching providers and making very deliberate decisions to stretch household budgets.”
More than half of Australians — 57% — reported switching at least one provider in the past year in response to price rises, NAB found. Supermarkets were the most commonly changed category, highlighting groceries as a central source of pressure. Elevated switching was also recorded across insurance, internet and mobile services, streaming subscriptions and energy retailers.
Source: National Australia Bank
Looking ahead, NAB reported weaker intentions for discretionary outlays, with reduced appetite for major household purchases, home renovations and holidays.