Index reveals less consumer stress
Consumers are displaying less signs of stress in the first quarter of this year, according to the latest data released by Dun & Bradstreet as part of its Consumer Financial Stress Index.
The company said this represented a sign that economic conditions in Australia were stabilising.
"Although still high, especially in the nation's two most populous states, the level of financial stress has declined through February and March this year," the Dun & Bradstreet analysis said.
It said the improvement reflected the more settled financial position of many consumers following a period of financial caution late last year, and the positive effect of low interest rates.
Dun & Bradstreet said the index had fallen to 21.2 in March 2013 after spiking at 24.9 following the Christmas period when household finances were often stretched and personal debts mount.
Following a jump during the final months of 2012, the latest index data suggests that the ongoing low level of interest rates, recent confirmation of solid wages, and relatively low unemployment had contributed to an easing in consumer financial stress levels.
"A continuation of this year's sharemarket and house price increases should, with the usual lag, further aid the net financial position of consumers," it said.
Dun & Bradstreet's chief executive Gareth Jones said the recent drop in the Consumer Financial Stress Index built on an increasing number of positive consumer and economic indicators seen in the early stages of 2013.
"The relative easing of consumer financial stress levels is another piece in the economy's recovery puzzle," Jones said.
Recommended for you
Iress chief executive Marcus Price has shared how he is seeing “massive tailwinds” in financial advice in Australia, with the firm turning its attention to digital advice following the completion of its transformation project.
Licensee Centrepoint Alliance has shared its first half FY25 results with strong performance coming from the acquisition of Financial Advice Matters.
Professional services firm AZ NGA has announced a group chief financial officer, who previously spent six years as Fitzpatricks Financial Group’s CEO.
Clime’s disposal of advice licensee Madison “needed to happen yesterday”, managing director Michael Baragwanath has told Money Management, as he concludes a severe cost-out period at the business.
