Australian consumer anxiety at three year low

Australian consumer worries fell to their lowest levels in almost three years, although concern is growing regarding the Australian government's upcoming May budget, according to a survey released on Thursday.

The National Australia Bank's (NAB) Quarterly Australian Consumer Behavior Survey found that consumer anxiety had fallen for its third quarter in a row as recovery in the non-mining economy supported the labour market during the first quarter of 2016.

NAB's consumer anxiety index fell to 60.4 points during the first quarter of 2016, its lowest level since the second quarter of 2013.

However, the survey found government policy has joined cost of living as the joint biggest contributor to overall consumer anxiety.

It found that almost 27 percent of Australians rated their anxiety associated with government policy as "high".

"Overall, consumers are telling us they're less anxious about the state of the world, but they continue to be focused on paying off debt and essential items like utilities, transport and groceries," NAB chief economist Alan Oster said.

"Improvements in the labour market have helped consumer spending gain momentum since late last year," Oster said.

"We continue to expect moderate growth in consumer spending throughout 2016."

The survey also found women continue to be much more anxious than men, particularly those aged 30 to 49, who have overtaken women aged over 50 as the most stressed. Endit