Australians still vigilant are saving “persistent” savings

Some amazing discoveries about how Australians are financially coping during a covid pandemic are revealed in a new report.

Commonwealth Bank analyzed client account data and found that the median savings balance in September was only $ 100 lower than in the same month last year when the health crisis was in full swing.

However, its average balance (not disclosed in the report) was 66% higher than in September 2019, before the health crisis.

Ben Grauer, head of the CBA’s financial and welfare department, said it shows that “preventive savings behavior is sustained during the pandemic.”

Until April, Australians consistently had more cash in their pockets than spending, but that trend reversed in May.

Consumer sentiment reached a high for the first time in 11 years in April and rebounded from a low for the first time in 10 years at the start of the pandemic.

And by September, Australia’s average annual cash inflow had increased by $ 3,100, but the surge in outflows of $ 4,900 outweighed it.

John de New of the Melbourne Institute put it into economic recovery earlier this year in response to stagnant consumer demand.

Despite the surge in spending, he said his savings remained high.

“Data should be interpreted as a sign of a healthy economy recovering with increasing consumption and confidence,” said Professor Denu.

Camera iconIn April, consumer sentiment surged as the economy recovered, shoppers started spending and the stagnation in demand was resolved. NCA NewsWire / Emma Brasier credit: News Corp Australia

Overall, the report concluded that as of September of this year, the average Australian’s economic well-being score was 50.1 out of 100.

Surprisingly, the score was as low as 47.3 two years ago.

Mr. Glauer said the results were encouraging to see and could be surprising to some.

“The various macro and micro economic factors during the pandemic all help explain this increased level of sustained economic well-being compared to pre-Covid,” he said.

“Australian people across the country were limiting their consumption and increasing their savings in light of the uncertainties of the time, while being supported by government initiatives such as JobKeeper and JobSeeker.”

Another surprising finding was that despite enduring strict restrictions and blockades, Victoria and New South Wales did well, and only ACT won.

The territory score was 53, Victoria was slightly lower at 52.6, and NSW was 49.9.

South Australia is fourth (49.4), followed by Western Australia (49.2), Tasmania (48.5), Queensland (46.5) and the Northern Territory (46).

This report is based on the size of the Melbourne Institute, which is one of the five key measures of financial well-being. Financial freedom, control, security, and fulfillment of current and future ongoing obligations.

Australians still vigilant are saving “persistent” savings

Source link Australians still vigilant are saving “persistent” savings

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