Australians still cutting spending but cost-of-living concerns have eased: NAB

The news: Australians are still cutting back on car journeys, eating out and going to the movies as inflation crunches household budgets — but cost-of-living concerns have eased for the first time in almost two years, according to the bank's quarterly survey of consumer sentiment.

The numbers: Australians said they were reducing their monthly spend by around $300 month by skipping restaurants (55%), coffees and lunches out (50%), and trips to the cinema (47%). Eight out of 10 people surveyed said their general expenses had risen in the past three months, but fewer expected prices to continue rising at such a rate.

The context: NAB said Australians were "adapting to shifting price pressures by flexing their newly built 'budgeting muscle'". However, the household savings ratio has dropped to 3.2%, the lowest since 2008, according to the latest ABS data, indicating continued pressure on household finances.