The index fell for the second straight quarter in Q4 2021 to 55.1 underpinned by lower stress over jobs (42.4 vs 45.0 in Q3), and also found that workers are eager to return to the office.
With a federal election looming, concerns relating to government policy also eased as did stress arising from funding retirement, but the cost of living has re-emerged as a serious worry for Australians.
Household stress associated with cost of living has risen to the top spot as the biggest driver of concern for consumers. Stress associated with health also increased.
Although they are willing to spend more money, the report found that consumers are shopping more mindfully and cost-consciously, with demand for local, sustainable and value brands rising. The recent surge in digital and omnichannel adoption, particularly among new or infrequent users, also looks set to continue.
Many habits formed during the crisis are likely to endure well beyond it, presenting businesses with the opportunity to align to changing consumer mindsets and shape emerging habits.
The report also raised questions about how CBDs may look and function over the coming 12 months with people saying they were spending around 59 per cent of their week at their workplace and 41 per cent at home. When asked about their ideal future work situation, the split was remarkably similar to the current situation – 56 per cent of time at the workplace and 44 per cent at home. This indicates that while hybrid working is clearly the preference, most employees also want to spend time in the office.
The NAB economists believe that CBDs will rebound but will have to evolve with commercial, residential, cultural/social amenities and open/pedestrian spaces co-existing more harmoniously with “liveability” at its heart.
The cost, accessibility and safety of transport networks are more important than ever. Parking is also an issue. Affordable housing options are another element of CBD revival, creating a more diverse mix of residents and supply of workers.
