NAB chief executive Andrew Irvine says cost-of-living pressures continue to be the greatest source of stress for households with some parts of the economy coming under heavier pressure.
Appearing before the House of Representatives Economics committee inquiry today, Irvine said the economy should grow more quickly in the second half of the year but that it was a challenging environment for now.
CEO Andrew Irvine.Credit: Eamon Gallagher
“Growth is weaker than it has been for many years, though still positive,” he said.
“The job market continues to show resilience but is softening ... my view is that there are two Australias, and a two-speed economy operating at present.”
Irvine said the bank’s consumer sentiment survey showed cost-of-living remained the biggest source of stress for households.
Customers in certain sectors and certain geographies are doing well and are ambitious to grow, Irvine said, including mining and resources businesses and consumers living and working in parts of Western Australia and Queensland.
Meanwhile, he said retail and parts of the construction industry were doing it tougher and that states such as Victoria and NSW were under more pressure than others.
“Our data shows people are having to make tough decisions about where they spend their money,” he said.
“They are getting by, but it is hard.”