With the nation in its first recession in 29 years, Australians are 67 per cent of Australians have expressed concern about the nation’s economic outlook according to new research by MyState Bank.
As a result, the research found more than four in 10 Australians (44 per cent) are planning to curb discretionary spending in the next six to twelve months.
The areas in which Aussies planned to cut costs included dining out and delivery services, travel and home furnishings and decor. Gym memberships are also on the chopping block with more than four in 10 Australians planning to cut back the costs of working out. Meanwhile, Australians are also kicking their vices to the kerb with 44 per cent and 35 per cent reducing their gambling along with their alcohol and cigarettes spend, respectively.
The only areas likely to see an increase in consumer spending are groceries and household utilities, as Australians spend more time at home due to restrictions and lockdown.
“For many Australians, the introduction of social distancing measures has been an opportunity to save more than ever before on expenses from public transport to dining out at restaurants,” said Heather McGovern, MyState Bank General Manager, Customer Experience.
“Being isolated has also compelled more Australians to consider new and more innovative and cost-efficient ways of doing things, like swapping out memberships at physical gyms for fitness apps. Our research indicates that Australians are likely to prolong their savvier spending habits even after social distancing measures have lifted.”
“At this time of economic uncertainty, we are pleased to see Australians cutting back wherever they can to find a greater sense of financial balance.”
Among the nation’s most common new financial year resolutions were starting and maintaining a budget which over a third of Australians pledged to do. Meanwhile, building an emergency fund and haggling providers for a better deal on big household bills was a key goal for more than one in five Australians, respectively.
MyState Bank’s research found that overwhelmingly, the nation’s economic outlook continues to be the major concern for 67% of Australians heading into the new financial year. The research found more than four in 10 Australians reported concern with not having enough savings while 26% of Australians are equally concerned with the employment outlook and slow wage growth.
“While recovery is well underway, the majority of Australians expect long-lasting effects on the economy from COVID-19,” said McGovern said. “With economic growth likely to be in the red over the coming quarter, there are a few steps Australians can take to give them confidence to navigate the future economic uncertainty.”
Want more? Get the latest coronavirus news and updates straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.