Cash-strapped consumers are cutting spending the most on groceries, eating out and clothing, according to data from brand tracking platform Tracksuit.
Its research found 65% of Australians are now spending less on groceries, while 60% have cut costs on eating out, while and 50% are spending less on clothing. The Tracksuit study also found those aged 18-34 are most likely to make cuts across all three categories.
For those cutting back on groceries, the data found half are opting for cheaper alternative items, while 47% have reduced the amount of items they buy.
Queensland in particular saw the most consumers cutting back at 68%, followed by Victoria at 66% of consumers, and 63% in New South Wales and the Australian Capital Territory.
Other areas that have taken a hit are travel and healthcare, with 42% and 36% of Aussies respectively cutting back on spending. Those aged 18-34 are most likely to make cuts in those categories.
Around 26% of Australians cutting back on travel have stopped spending any money altogether, while 30% of consumers reducing healthcare spend are opting for cheaper options.
Cost of living data from Tracksuit
Tracksuit surveyed some 2,490 Australian consumers over the month of April.
A separate report on the impacts of the cost-of-living crisis by financial marketplace comparison and advice site Compare Club delved into bill stress.
Its Bill Stress Index found some 70% of all Australians feel anxiety on a daily, weekly or monthly basis about paying household bills, and 22% of Aussies say somewhere between 50% to 70% of their income now goes solely towards household bills.
Compare Club also found 21% of people are struggling to make ends meet, and 33% have had to borrow money to pay bills. Some 54% have delayed bill payments due to a lack of finances, while 60% have cut back on non-essential spending, 51% have created a budget, and 35% are using payment plans or extensions.
Compare Club CEO Lance Goodman said: “We’re in the business of helping people switch [providers], but it’s genuinely surprising that people would rather cut back on other non-essential expenses before tackling their personal finance products.
“We recently found that the average household could save over $7,000 a year by switching multiple financial products.”