Household financial conditions remain low
The Melbourne Institute household financial conditions index shows the proportion of households who are saving relative to the proportion of households who are running into debt and/or drawing on their savings (see Chart below).
According to Dr. Edda Claus, a Research Fellow at the Melbourne Institute “the household financial conditions index rose 3.8 per cent to 33.3 in March”.
She added, “The index is up 15.6 per cent from this time last year. This rise sounds better than it actually is, because March 2010 was a low outcome. Financial conditions of Australian households declined during the global financial crisis and conditions remain low, more than two years after the crisis.”