Overall household financial comfort has fallen, according to ME’s latest Household Financial Comfort Report. The survey finds that in the six months to June 2015, Australian households had less confidence in coping with a financial emergency like loss of income, and less cash savings.
Household confidence in coping with a financial emergency fell 11 percent in the six months to June 2015, largely contributing to a 6 percent fall in overall financial comfort (to 5.41 out of 10). Increased concerns about the job market coupled with weak income growth were factors affecting household financial confidence, said Jeff Oughton, ME’s consulting economist and report co-author.
The report also highlighted the difficulty facing first home buyers who wish to enter the property market, with overall financial comfort for renters down 12 percent to 4.35 out of 10, well below the comfort of homeowners (6.52) and households paying off mortgages (5.28).