Australian households increased their total wealth 1.2 per cent in the March quarter and by 35 per cent since the start of the pandemic.
Australians have never been wealthier, but fears over rapid inflation and possible recession are overshadowing pandemic-era savings buffers and near-full employment to pose a threat to economic growth.
David Bassanese, chief economist at fund manager BetaShares, agreed that the near-$15 trillion household wealth figure had most likely peaked. However, overall consumer stress is still lower than in mid-2021, the NAB survey found. And while the economy is expected to take a hit as the “wealth effect” fades, KPMG is still projecting “positive consumption growth” ahead, Dr Rynne said.
Households acquired financial assets worth $52.4 billion over the quarter, including both deposits and equity in super and pension funds. Those assets were offset, however, by $44.5 billion of liabilities, of which almost $42 billion was attributed to loans.
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