The Australian economy, buoyed by a global resources boom, may be experiencing macroeconomic benefits, but many households continue to struggle with high costs of home affordability and rising living expenses.
These are the findings of ING DIRECT’S latest quarterly Household Financial Wellbeing Index, delivering unique and holistic insights into how ordinary Australians are faring financially.
The Index looks at six key issues of personal money management including short and long term debt, personal savings, investments, income and ability to meet regular bills, to provide an encompassing
view of whether we’re forging ahead, losing ground or maintaining our financial position.
Index falls from 113 (Q2) to 108 (Q3)
In the third quarter of 2010, we find that household financial wellbeing has declined. The Index has dropped from 113 in Q2 to 108 in Q3.
The deterioration in financial wellbeing is across the board, household comfort levels have dropped across each of our six focus areas.
It’s a significant turnaround in a remarkably short space of time. The buoyant mood we noted in Q2 has been replaced by a sense of pessimism as households appear to be bracing for the pain of
higher interest rates. Yet ironically, the Q3 drop in financial wellbeing coincides with a period of rising incomes, personal tax cuts and interest rate stability.
In this issue of the ING DIRECT Household Financial Wellbeing Index we discover why Australians are feeling worse off at a time when key economic indicators suggest our financial wellbeing should be improving.
“ The ING DIRECT Financial Wellbeing Index is a comprehensive look at how Australian households are coping with finances. We believe the health of, and the attitude to, household finances goes to the
heart of determining the strength and the direction of the Australian economy.”
CEO, ING DIRECT Australia