Stress rises, consumers adapt – NAB Consumer Sentiment Survey Q3 2026

23rd September 2026

Economy & Markets 

• Cost-of-living stress has risen to its highest level since mid-2014.

• Households are reshaping budgets, prioritising essentials and seeking better value.

• Resilient employment continues to support spending despite ongoing financial pressure.

Cost-of-living pressures continue to intensify for Australian households, with NAB’s latest Consumer Sentiment Survey showing consumers remain under significant strain despite spending holding up better than sentiment would suggest. 

NAB Head of Behavioural Economics Dean Pearson said households are adapting how they spend rather than withdrawing from the economy altogether.

“Cost-of-living stress rose to its highest level since mid-2014, with most Australians continuing to face higher expenses across essential categories,” Mr Pearson said.

“Consumers are not simply stopping spending. They're actively reshaping household budgets, searching for value and making more deliberate choices about what they buy and where they buy it.”

The survey found a net 81% of Australians reported higher living costs, while the NAB Consumer Stress Index increased to 60.1, above its long-run average and higher than a year ago. Pressure remains concentrated in groceries, utilities and transport. 

Increasingly, households are responding by becoming more conscious and selective consumers. More Australians reported being mindful about spending, researching products and switching providers to find better value.

“Consumers are becoming more deliberate and value-focused as they manage higher costs,” Mr Pearson said.

“Strong employment remains the key buffer supporting household spending, giving many Australians the capacity to adapt without cutting back more sharply.”

Spending intentions remain strongest for essential items, while discretionary spending continues to face pressure. NAB transaction data also shows spending growth is being driven primarily by non-discretionary purchases rather than broader consumer confidence. 

The survey points to a consumer environment where resilience persists, but largely through adaptation and careful budget management rather than improved financial comfort. As households continue to absorb higher costs, spending decisions are becoming increasingly driven by price, value and financial trade-offs.

Read the full NAB Consumer Sentiment Survey Q3 2026 (PDF, 1MB).