A new survey of Australian households has revealed the recession has not had as big an impact on Australians as thought, with 63% reporting that they remain “extremely” or “very” satisfied with their lives.
Ad agency Grey’s 18th annual “Eye on Australia” also shows that more households have not closed their wallets completely. While 86% of the 778 respondents said they are actively trying to avoid debt, almost four in five say they will spend more or the same on items like groceries and general household expenses.
Simon Rich, director of planning at Grey, argues that the real impact of the recession so
far has been the negative sentiment rather than the physical effect. The percentage of respondents reporting they were very or extremely satified with their lives fell just 2% compared to last year.
“For most Australians, life is still OK,” he says. “Interest rates are low, the cost of petrol is declining, and unemployment has not yet reached crisis levels. So we are positive about today, but concerned about what the future may hold, and as a result we are cutting back expenses and holding off on big ticket purchases.”
While respondents said their main concern was job security in the next five years, three quarters said they were satisfied with their job, although 42% of pre-baby boomers say they will have to delay their retirement because of the global financial crisis.
“This probably reflects the fact that many workers are happy to still have a job. It seems like most of us feel that the GFC is out of our control and we just have to ride it out.”
The survey, which also looks at consumer spending trends, shows Australians will cut back on dining out, furniture and electrical goods, holidays and software in the next 12 months, although they will spend more on general household expenses, health and medical expenses and home renovations.
But Rich dismisses the idea that Australians will spend up big on home improvements in the next 12 months as the recession forces people to stay close to home.
“While circumstances may have encouraged us to entertain at home, we are not ‘cocooning’. What they are doing is budget ‘busting’. No longer are Australians putting it on the credit card, but we are looking to be smarter with our own money.”
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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