Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 7 Aug 2026 2,788 Indicators

Market Overview - August 2026 Economic Summary

Bulls Run Wild on the ASX as Australia Navigates a Complex Economic Rebalance

Australia's financial markets ignited this week as the ASX 200 leapt 3.2% to 9,264 points and the All Ordinaries surged 3.4% to 9,445, reflecting renewed investor optimism. Yet beneath this equity rally lies an economy executing a delicate balancing act. While top-line output expands at a measured pace, persistent inflation keeps policy makers vigilant. As the central bank (@RBA_Info) observed upon keeping rates on hold, higher interest rates are working to cool aggregate demand across the economy.

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GDP & Economic Output

Australian GDP hits $695.9bn as sector gains offset per capita slowdown.
Australian GDP reached $695.9bn in the March Quarter of 2026, registering 2.5% year-on-year growth to bring the annual total to $2.76t. Financial Services (+4.9%) and Manufacturing (+3.2%) drove economic expansion, while Agriculture (-0.7%) acted as a major drag. Quarterly GDP per capita stood at $25,033, showing modest 1.0% annual growth as economic trajectory continues to moderate.

Australian GDP totalled $695.9bn in the March Quarter of 2026, reaching a combined $2.76t over the rolling year. Quarterly output expanded by 2.5% year-on-year, while annual production rose 2.3% compared to the prior year. This reflects a moderating growth trajectory compared to earlier peaks, as broader macroeconomic headwinds continue to temper top-line momentum across the national economy.
On an individual level, quarterly GDP per capita reached $25,033 in the March Quarter of 2026. While headline GDP grew 2.5% year-on-year, per capita GDP grew just 1.0%, as population growth diluted overall economic gains per person. This substantial gap between top-line expansion and per capita performance underscores that broader output growth is heavily reliant on demographic expansion rather than strong gains in underlying per-person productivity or individual prosperity.
Sectoral performance revealed clear drivers and drags relative to long-term trends. Financial Services grew 4.9% (vs 2.5% 10-year average) and Manufacturing expanded 3.2% (vs 0.4% 10-year average), alongside Mining output at 3.1% (vs 0.9% 10-year average). Conversely, Agriculture contracted 0.7%, severely underperforming its 4.0% 10-year average, while Health growth slowed to 2.2% against its historical average of 5.1%.
Financial Services Growth
+4.9%
+2.4pp vs 10yr avg (2.5%)
Rising
Manufacturing Output
+3.2%
+2.8pp vs 10yr avg (0.4%)
Rising
Agriculture Output
-0.7%
-4.7pp vs 10yr avg (4.0%)
Falling
GDP per Capita Growth
+1.0%
Lags headline GDP (+2.5%)
Falling

Population & Migration

Australia's population hits 27.8m as net overseas migration moderates.
Australia's population reached 27.8 million as at Dec-25, up 1.5% y/y. Annual net overseas migration slowed 8.9% to 301.0k, well below its 10-year average growth rate of +479.9%. Natural increase stood out positively, rising 7.9% to 112.6k (vs 10yr avg -2.6%). WA (+2.2%) led state population growth, while TAS (+0.5%) lagged.

Australia's population reached 27.8 million as at Dec-25, expanding by 413,600 persons (1.5%) over the year. Growth has moderated from post-COVID peak rates as overseas arrivals ease. Net overseas migration fell 8.9% y/y to 301.0k persons, contrasting with a 7.9% y/y increase in natural additions (112.6k). The overall growth trajectory reflects a steady normalisation toward long-term averages following federal policy tightening and post-pandemic recalibration across tertiary student visas.
Demographic expansion comprised 301,000 persons from overseas migration, 112,600 persons from natural increase (births minus deaths), and net zero interstate migration nationally. Natural increase is the key positive standout, with growth of +7.9% sitting 10.5pp above its 10-year average (-2.6%). Conversely, overseas migration contracted -8.9% y/y, falling 488.8pp below its 10-year average growth rate (+479.9%). While overseas migration remains the largest quantitative contributor at 301,000, natural increase provided an accelerating buffer as net overseas inflows moderated.
Across the states, Western Australia (+2.2%), Victoria (+1.7%), and Queensland (+1.6%) recorded the fastest population growth rates, whereas New South Wales (+1.2%), South Australia (+1.0%), and Tasmania (+0.5%) lagged behind. Annual overseas migration growth was highest in the ACT (+9.9%) and the Northern Territory (+2.0%). In contrast, overseas migration decelerated sharpest in Tasmania (-18.0%), Western Australia (-13.8%), and Victoria (-12.2%), highlighting a widespread slowdown in international population flows across major economic hubs.
Total Population
27.8m
YoY growth +1.5% as at Dec-25
Rising
Overseas Migration (Annual)
301.0k
-8.9% y/y (-488.8pp vs 10yr avg)
Falling
Natural Increase (Annual)
112.6k
+7.9% y/y (+10.5pp vs 10yr avg)
Rising
WA Population Growth
+2.2%
Fastest growing state y/y
Rising

Development Activity

Dwelling pipeline rebounds in early stages while completions lag behind.
Annual dwelling approvals rose 9.2% YoY to 205,200 in Jun-26, exceeding 10-year average growth (-0.6%). Commencements grew 12.1% YoY to 197,500 in Mar-26, but completions fell 3.8% to 172,900, pointing to pipeline conversion bottlenecks. Growth was fastest in the ACT (+41.9%) and QLD (+26.5%), while VIC lagged (-1.7%). Overall development activity is recovering from prior troughs.

In Australia, 205,200 dwellings were approved in the year to Jun-26. Annual growth reached 9.2%, standing 9.8 percentage points above the 10-year average growth rate of -0.6%. On a per capita basis, commencements sat at 7 per 1,000 persons, below the 10-year average of 8 per 1,000 persons. Approvals have recovered from previous troughs, signaling renewed momentum in early-stage pipeline activity despite ongoing cost and feasibility constraints in broader construction.
Across pipeline stages, annual approvals reached 205,200 (Jun-26, +9.2% YoY), commencements rose to 197,500 (Mar-26, +12.1% YoY), while completions fell to 172,900 (Mar-26, -3.8% YoY). While early stages exceed 10-year growth averages, completions sat at 6 per 1,000 persons versus the average of 7, identifying a clear conversion bottleneck. By dwelling type, attached approvals grew +10.3% YoY (vs 10yr avg -2.1%) and house approvals grew +8.4% YoY (vs 10yr avg +1.1%).
State performance diverged significantly. On approval growth, the ACT (+41.9% YoY) and QLD (+26.5%) led, with the ACT also recording strongest commencement growth (+95.4%). In contrast, VIC approvals contracted (-1.7%) and NSW grew +6.0%. Commercial building approvals showed mixed trends: retail approval value grew +9.7% YoY (vs 10yr avg +3.7%), while industrial value growth (+7.9% vs avg +12.2%) and office value growth (-0.3% vs avg +8.8%) tracked below average.
Dwelling Commencements (Annual)
197.5k
+12.1% YoY vs 10yr avg -0.9%
Rising
Development Approvals - Attached
+10.3% YoY
12.4pp above 10yr avg (-2.1%)
Rising
Dwelling Completions Per 1k Pop
6 per 1,000
Below 10yr avg of 7 (-15.9%)
Falling
Commercial Value - Office
-0.3% YoY
9.1pp below 10yr avg (+8.8%)
Falling

Housing Market

Capital city house prices reach $1.09m as regional market growth leads.
Australian capital city house prices reached $1.09m in Mar-26, up 9.1% YoY, while regional prices grew 11.9% to $754,000. Growth has moderated amid cautious buyer sentiment. Regional affordability strained as house price to income multiples hit 6.81x (7.5% above average). NT (+25.0%) and WA (+22.0%) led capital price growth, while VIC (+1.8%) lagged.

The median house price across Australian capital cities reached $1.09m in Mar-26, up 9.1% over the year. Regional house prices reached $754,000, up 11.9%, outperforming their 10-year average growth of 7.2%. Capital attached dwelling prices rose 7.0% to $736,000, outpacing their decade average of 3.3%. Price growth has moderated from earlier peaks as buyer sentiment cools.
Capital city attached dwellings are priced at 6.65x annual household income, sitting 13.5% below their 10-year average of 7.69x and offering improved affordability. Conversely, regional housing faces strain, with house price to income multiples at 6.81x (7.5% above the 6.34x decade average), placing regional housing in moderately unaffordable territory. Regional attached units reached 6.42x income.
Price growth is strongest in NT (+25.0%), WA (+22.0%), and QLD (+21.4%), while weakest in VIC (+1.8%), NSW (+2.4%), and TAS (+3.5%). For attached units, WA (+27.8%) led growth, whereas VIC (-2.1%) declined. Capital house values remain highest in NSW ($1.49m) and lowest in TAS ($740,000).
Attached Price to Income Multiple - Regional
6.42x
+11.1% vs 10yr avg (5.78x)
Rising
House Price to Income Multiple - Regional
6.81x
+7.5% vs 10yr avg (6.34x)
Rising
Attached Price to Income Multiple - Capitals
6.65x
-13.5% vs 10yr avg (7.69x)
Falling
Regional House Price Growth
+11.9%
+4.7pp vs 10yr avg (+7.2%)
Rising

Housing Finance

Investor surge drives national housing finance to $112.4bn in Mar-26, up 8.7%.
Housing finance commitments totalled $112.4bn in Mar-26, up 8.7% year-on-year to outperform the 10-year average growth of 3.4%. Investor lending was the key standout, expanding 25.0% against its 10-year average of 12.6%. State growth was led by the ACT (+14.6%) while the NT lagged (-6.8%). Overall lending continues recovering amid stretched serviceability.

Housing finance commitments totalled $112.4bn in Mar-26, up 8.7% compared to a year ago. Annual lending growth is 5.3 percentage points above the 10-year average of 3.4%, signaling that credit activity remains resilient. Indicating a sustained recovery trajectory, overall housing finance has recovered from subdued levels in previous periods as mortgage demand rebounds despite elevated interest rates.
Owner-occupier lending reached $75.8bn (67.4% of total), while investor lending rose to $36.7bn (32.6% of total). Owner-occupier lending grew 2.3% while investor lending grew 25.0%. Investor growth outpaced its 10-year average of 12.6% by 12.4 percentage points, whereas owner-occupier expansion remained modest. Investors account for 32.6% of new lending, reflecting market dynamics where investor demand accelerates while high interest rates constrain owner-occupier serviceability.
Across the states, lending growth showed notable divergence. The ACT (+14.6%), TAS (+11.6%), and NSW (+11.5%) recorded the strongest total growth, while WA (+2.8%) and the NT (-6.8%) lagged. Owner-occupier borrowing diverged sharply, rising 13.7% in the ACT but contracting 5.7% in WA and 11.3% in the NT. This spatial variation highlights how high interest rates and housing price trends impact state credit markets unevenly, favoring markets with stronger investor appetite.
Housing Finance (Investor)
$36.7bn
Growth of +25.0% vs 10yr avg +12.6% (+12.4pp)
Rising
Housing Finance (Total)
$112.4bn
Growth of +8.7% vs 10yr avg +3.4% (+5.3pp)
Rising
Housing Finance (Owner Occ)
$75.8bn
Growth of +2.3% YoY (67.4% of total)
Rising
State Growth Leader (ACT)
+14.6% YoY
Fastest total housing finance growth nationwide
Rising

Rental Market

National rents rise 5.2% YoY, led by Tasmania; NSW, Victoria lag on growth.
The national median rent hit $617/wk in Sep-25 ($608 rolling-year), up 5.2% YoY. CPI Rents growth (3.8%) sits well above its 2.1% decade average, with market rents still outpacing the CPI stock measure. Tasmania (+9.6%) and Queensland (+7.3%) lead state rent growth; Victoria (+4.7%) is slowest, despite NSW holding the highest dollar rents nationally.

The national median rent stands at $617 per week ($608 on a rolling-year basis) as at Sep-25, up 5.2% YoY on the rolling measure. The latest quarter's spot growth (5.5%) runs slightly ahead of the rolling-year pace, pointing to modest acceleration rather than cooling. The 3-bed house rolling-year median has grown a similar 5.3% YoY to $591/wk, indicating the pickup is broad-based across dwelling types rather than concentrated in one segment.
Nationally, the 3-bed house rolling-year median ($591/wk) sits $60 above the 1-bed unit median ($531/wk), a gap of roughly 11%. Larger dwellings show the steepest premiums: the 4-bed house median ($691/wk) is running 50.1% above its decade average, and even 3-bed units ($803/wk) are up 31.4% on trend — an unusually wide unit premium that suggests a well-located, larger-cohort mix is driving unit rents rather than broad affordability substitution into smaller stock.
Across states, Tasmania (+9.6%), Queensland (+7.3%) and WA (+6.4%) lead rolling-year rent growth, while NSW (+6.1%), SA (+5.9%) and Victoria (+4.7%) trail — even though NSW still commands the highest dollar rents nationally at $709/wk rolling-year. Market rents (+5.2% rolling-year) continue to outrun the ABS CPI Rents measure (+3.8% YoY), itself already 81% above its 2.1% decade average, implying further upside in the CPI print as new-tenancy rent growth flows through to the broader stock.
CPI Rents Growth (YoY)
3.8%
vs 2.1% 10-yr avg (+81.0%)
Rising
4-Bed House Rent (Rolling Yr)
$691/wk
vs $460 10-yr avg (+50.1%)
Rising
3-Bed Unit Rent (Rolling Yr)
$803/wk
vs $611 10-yr avg (+31.4%)
Rising
Tasmania Median Rent (YoY)
+11.0%
fastest of any state, vs national +5.5%
Rising

Monetary & Financial Conditions

RBA Holds Cash Rate at 4.35% as Yield Curve Signals Stability
The RBA cash rate stands at 4.35% as at August 2026, up 20.8% YoY and above its 10-year average of 2.05%. Policy remains on hold nationally across all states for 4 consecutive months as tightening takes effect. Two-year bond yields represent the key standout at 4.52%, sitting 101.4% above their 10-year average of 2.24%. Financial conditions remain restrictive but trajectory has stabilized.

The RBA cash rate stands at 4.35% as at August 2026. This is above the 10-year average of 2.05%. The cash rate has been on hold for 4 months following policy adjustments, reflecting 425bp of tightening since May 2022. The central bank maintains a restrictive stance as higher rates work through the economy, with policy held steady to balance aggregate demand and supply while monitoring ongoing inflation risks.
Policy transmission continues to pass through to borrowers. As at June 2026, the owner-occupier variable mortgage rate sits at 6.80%, representing a 2.45% spread over the cash rate. The 3-year fixed rate stands at 6.74%, while small business loan rates reach 9.00%. Mortgage holders face variable rates 1.65% higher than the 10-year average of 5.15%, and 3-year fixed rates 2.12% above their 4.62% 10-year average. High servicing costs continue to weigh on household credit demand across Australia.
In government bond markets, the 2-year bond yield stands at 4.52% and the 10-year bond yield is 4.92% as at August 2026. This reflects a yield curve spread of 40bp positive. The positive yield curve suggests markets expect economic stability and eventual policy normalization rather than near-term severe downturn. Yields sit well above historical benchmarks, with 2-year and 10-year bonds 101.4% and 69.1% above their respective 10-year averages of 2.24% and 2.91%.
Two-Year Bond Yield
4.52%
101.4% above 10yr avg of 2.24%
Stable
Ten-Year Bond Yield
4.92%
69.1% above 10yr avg of 2.91%
Stable
3-Year Fixed Mortgage Rate
6.74%
45.7% above 10yr avg of 4.62%
Stable
Owner-Occupier Variable Rate
6.80%
31.9% above 10yr avg of 5.15%
Stable

FX Rates & Commodities

AUD trades above 10-year average supported by rural commodity growth.
The Australian dollar trades at US$0.7043 as at 7 August 2026, up 7.7% YoY and 5.9% above its 10-year average of US$0.6600. The Trade Weighted Index stands at 65.50, up 8.6% YoY. Standout performance is led by Rural Commodities growing 19.6% (+13.3pp above average), while AUD/JPY sits 13.2% above average at 112.90. The currency trajectory remains firm amidst supporting terms of trade.

The Australian dollar is trading at US$0.7043 as at 7 August 2026. The trade-weighted index stands at 65.50 as at July 2026, up 8.6% over the year. Comparing levels to historical benchmarks, the AUD is 5.9% above its 10-year average of US$0.6600, while the TWI is 5.9% above its 10-year average of 61.83. On a year-on-year basis, AUD/USD is up 7.7% over the year. The overall trajectory reflects an accelerating path for the Australian dollar, underpinned by broad-based demand across major trading partners.
Across major bilateral crosses, the AUD exhibits broad strength. Against key trade partners, spot rates stand at 0.5233 for AUD/GBP and 4.7365 for AUD/CNY, while AUD/EUR reached 0.6100 in July 2026, up 7.0% YoY. The standout major cross is AUD/JPY at 112.90, trading 13.2% above its 10-year average of 99.72. The AUD has strengthened most against the yen (+13.2%) and US dollar (+5.9%) relative to historical averages. This elevated exchange rate improves import purchasing power across Asian and European markets while moderating local currency offshore receipts.
Australia's Commodity Price Index AUD grew 7.5%, placing it 2.0pp below its 10-year average of 9.5%. A distinct split emerges between key sectors: Mining commodities grew 5.7%, standing 4.2pp below their 10-year average of 9.9%, whereas Rural commodities outperformed with 19.6% growth, 13.3pp above their 10-year average of 6.3%. Spot gold remains firm at $6,213 AUD/oz. This robust rural performance supports Australia's terms of trade, maintaining strong fundamental backing for the AUD outlook despite moderating mining commodity growth.
Commodity Price Index - Rural AUD
+19.6%
+13.3pp vs 10yr avg (+6.3%)
Rising
AUD / JPY
112.90
+13.2% vs 10yr avg (99.72)
Rising
Trade Weighted Index
65.50
+5.9% vs 10yr avg (61.83)
Rising
Commodity Price Index - Mining AUD
+5.7%
-4.2pp vs 10yr avg (+9.9%)
Falling

Employment

Australian unemployment reaches 4.3% in March 2026 as job growth moderates.
Australia's unemployment rate reached 4.3% in March 2026, above its 10-year average of 4.0%. Total employment rose 1.8% YoY to 14.8 million, led by full-time jobs (+1.9%). Unemployed persons surged 7.0% YoY vs a 10-year average of -0.1%, highlighting a moderating labor market. Queensland held the lowest unemployment rate (3.7%), while South Australia led job growth (2.6%).

The unemployment rate in Australia stands at 4.3% as at March 2026. This is above the 10-year average of 4.0%. The unemployment rate has risen from previous low levels, reflecting a softening trend as the growth of unemployed persons (+7.0% YoY) outpaces employment expansion. While conditions remain relatively orderly, the labor market is no longer as tight as in prior years, moving from low levels towards above-average territory.
Total employment stood at 14.8 million persons as at March 2026, up 1.8% over the year. Highlighting solid underlying job quality, full-time employment grew 1.9% to 10.2 million positions, accounting for the primary share of new job creation. Employment growth continues to expand at a steady pace, supported by ongoing demand across key service sectors even as overall economic momentum moderates.
Across the states, Queensland recorded the lowest unemployment rate at 3.7%, while Victoria posted the highest rate at 4.8%. South Australia achieved the strongest employment growth at 2.6% YoY, followed closely by Queensland and the Northern Territory at 2.3%. Conversely, employment growth was most subdued in Victoria and the ACT at 0.7%, while Tasmania recorded a contraction of 0.6%.
Unemployed Persons
+7.0% YoY
+7.1pp vs 10yr avg (-0.1%)
Rising
Unemployment Rate
4.3%
Above 10yr avg of 4.0%
Rising
Full-Time Employment
10.2m (+1.9% YoY)
Outpacing total employment growth
Rising
Total Employment Growth
+1.8% YoY
Led by SA (+2.6%) and QLD (+2.3%)
Stable

Job Advertisements

Australian job ads fall 2.6% YoY in Jun-26 as labor demand moderates.
Job advertisements in Australia totalled 620.6k in Jun-26, down 2.6% YoY, running 9.4pp below the 10-year average growth rate of 6.8%. Total and Sales ads registered the largest slowdown relative to norms. South Australia led state growth at +2.5% YoY, while the ACT lagged at -9.8% YoY. Overall trajectory signals a cooling labor market ahead.

Job advertisements in Australia totalled 620.6k in Jun-26, down 2.6% compared to a year ago. This growth rate is 9.4 percentage points below the 10-year average of +6.8%. The decline from earlier highs indicates labor market demand is moderating. As job ads lead employment by 3 to 6 months, this sustained deceleration signals softer employment growth ahead while maintaining a gradual labor market rebalancing.
By ad category, Professional job ads totalled 181.5k (-0.8% YoY vs 10yr avg +6.2%), while Industrial job ads reached 128.5k (+1.5% YoY vs 10yr avg +8.3%). Sales job ads fell 2.2% YoY, lagging 9.3 percentage points below its 10-year average of +7.1%. Total job ads proved the main standout, sitting 9.4 percentage points below historical growth trends, while Industrial ads remained the sole category in positive territory.
Across states, annual growth was fastest in SA (+2.5%), WA (+1.5%), and TAS (-0.1%), whereas VIC (-3.9%), NT (-7.3%), and ACT (-9.8%) experienced the slowest growth. In Professional job ads, TAS (+5.2%) and NSW (+5.0%) led growth, while NT (-9.5%) lagged. The divergence shows resource-backed and smaller states outperforming larger economies, signaling uneven hiring conditions across Australia over coming quarters.
Total Job Ads
620.6k
-2.6% YoY vs 10yr avg +6.8% (-9.4pp)
Falling
Sales Job Ads
-2.2% YoY
vs 10yr avg +7.1% (-9.3pp)
Falling
Professional Job Ads
181.5k
-0.8% YoY vs 10yr avg +6.2% (-7.0pp)
Falling
Industrial Job Ads
128.5k
+1.5% YoY vs 10yr avg +8.3% (-6.8pp)
Rising

Wages & Earnings

Australian wage growth moderated to 3.2% in Mar-26 while earnings reached $2,129/wk.
Australian wages grew 3.2% y/y in Mar-26 as measured by the Wage Price Index (160.3), remaining 15.3% above its 10-year average of 139.1. Full-time weekly earnings rose 4.0% to $2,129 in Nov-25 ($109,517 annually). Growth was led by the ACT (+3.7%) and WA (+3.6%), while NT lagged (+2.3%). Trajectory indicates wage growth has moderated and is stabilizing near sustainable levels.

Wages grew 3.2% over the year to Mar-26, as measured by the Wage Price Index. The index stood at 160.3, which is 15.3% above the 10-year average wage index of 139.1, reflecting sustained cumulative gains. Wage growth has moderated from peak levels observed a year ago, signaling a shift toward stabilization. Overall wage momentum has settled into a steady path, indicating that headline wage growth has peaked and is now tracking at a moderate pace consistent with broader economic rebalancing across sectors.
Average full-time weekly earnings reached $2,129 per week in Nov-25 (+4.0% YoY), translating to $109,517 per year for full-time workers (+4.2% YoY). With nominal earnings expansion outpacing inflation, real wage growth was positive over the year. Workers experienced a meaningful gain in purchasing power, reversing prior real wage erosion. This real wage improvement compares favorably to the 10-year average real wage performance, providing essential support to household balance sheets as broader income growth stabilizes.
State wage patterns show notable divergence across growth and earnings levels. WPI growth was fastest in the ACT (+3.7%) and WA (+3.6%), whereas NT (+2.3%) and TAS (+2.9%) recorded the slowest growth. In terms of earnings levels, WA led with full-time weekly earnings of $2,304 per week, while TAS recorded the lowest at $1,890 per week. Divergences are clear: while TAS holds the highest overall WPI level (164.1), its weekly earnings level remains the lowest nationwide. Meanwhile, NSW led weekly earnings growth (+4.7%), while WA earnings growth lagged (+2.6%).
Wage Price Index Level
160.3 (Mar-26)
+15.3% vs 10yr avg (139.1)
Stable
Wage Price Index Growth
+3.2% YoY (Mar-26)
Moderating toward target
Falling
Weekly Full-Time Earnings
$2,129 (Nov-25)
+4.0% YoY growth
Rising
Annual Full-Time Earnings
$109,517 (Nov-25)
+4.2% YoY growth
Rising

Household Consumption

Australian household consumption rose 5.6% YoY to $382.9bn in March 2026.
Household consumption expenditure totalled $382.9bn in the March 2026 quarter, up 5.6% over the year. Per capita spending reached $13,771 (+4.0% YoY), sitting 20.9% above its 10-year average. Power expenditure stood out with 12.0% growth (+7.6pp above average), while transport growth lagged at 4.8%. Total spending growth was fastest in Queensland and Western Australia (+3.1%) and slowest in Tasmania (+1.8%).

Household consumption expenditure totalled $382.9bn in the March 2026 quarter, up 5.6% over the year according to quarterly National Accounts data. On a per capita basis, real spending per person reached $13,771, representing an annual increase of 4.0%. This per capita level sits 20.9% above its 10-year average of $11,392, reflecting sustained demand momentum despite broader economic pressures.
Spending across essential categories highlighted significant shifts in consumer priorities. Essential power consumption surged 12.0% YoY, outperforming its 10-year average growth of 4.4% by 7.6 percentage points. Food spending totalled $36.1bn (+4.2% YoY). Conversely, transport growth underperformed dramatically at 4.8% YoY, falling 14.6 percentage points below its 10-year average of 19.4%. As living costs rise, households are prioritizing utility essentials while scaling back discretionary transport spending.
Across the states, total consumption growth was strongest in Queensland and Western Australia (both +3.1% YoY), followed by the Northern Territory (+2.4%). Growth lagged in Tasmania (+1.8%), New South Wales (+2.2%), and Victoria (+2.2%). On a per capita basis, Queensland led growth (+1.5% YoY), while Victoria recorded the slowest expansion (+0.5%). Per capita expenditure levels remained highest in the Northern Territory at $14,079 and lowest in Tasmania at $11,823.
Per Capita Household Consumption
$13,771
+20.9% vs 10-year average ($11,392)
Rising
Power Consumption Growth
+12.0%
+7.6pp vs 10-year average (+4.4%)
Rising
Transport Consumption Growth
+4.8%
-14.6pp vs 10-year average (+19.4%)
Falling
Food Household Consumption
$36.1bn
+4.2% YoY growth
Rising

Household Spending

Australian household spending rose 5.5% y/y to $241.6bn in June 2026.
Household spending in Australia reached $241.6bn in June 2026, up 5.5% year-on-year. Per capita spending stood at $34,534, rising 21.3% above its long-term average. While essential spending like food grew 5.1%, discretionary categories saw mixed results, with recreation (+7.3%) outperforming hotels and restaurants (+4.9%). Growth was led by NT (+9.5%), with ACT lagging (+4.3%).

Household spending in Australia totalled $241.6bn in June 2026, up 5.5% compared to a year ago. Annual spending reached $34,534 per person, standing 21.3% above the 10-year average of $28,460. Monthly spending averaged $8,689 per person, also 21.6% above its historical benchmark of $7,145. Headline spending growth remains elevated, driven by persistent price pressures and essential expenditure commitments across households.
Essential spending remained resilient, led by food expenditure reaching $37.5bn (+5.1% y/y). Discretionary spending showed stark divergence as households managed squeezed budgets. Miscellaneous spending (+8.1% vs 10yr avg 5.4%) and recreation (+7.3% vs 10yr avg 5.1%) were standouts, growing 2.7pp and 2.2pp above their 10-year averages. Conversely, hotels and restaurants grew just 4.9%, falling 4.0pp below typical growth of 8.9%, while alcohol spending contracted 3.9% (-3.7pp vs avg).
Across states, spending growth diverged significantly. The Northern Territory recorded the strongest growth at +9.5% y/y, followed by Western Australia (+7.7%) and Tasmania (+7.7%). In contrast, the ACT (+4.3%), Victoria (+4.5%), and NSW (+4.8%) saw the slowest growth, reflecting heightened consumer caution in larger urban markets. High housing costs continue to constrain discretionary capacity, moderating spending momentum across the major eastern states.
Annual Per Capita Spending
$34,534
+21.3% vs 10yr avg ($28,460)
Rising
Miscellaneous Spending Growth
+8.1% y/y
+2.7pp vs 10yr avg (+5.4%)
Rising
Hotels & Restaurants Growth
+4.9% y/y
-4.0pp vs 10yr avg (+8.9%)
Falling
Alcohol Spending Growth
-3.9% y/y
-3.7pp vs 10yr avg (-0.2%)
Falling

Inflation & Cost of Living

Australian CPI rose 3.8% in June 2026, remaining above the RBA 2-3% target.
Headline CPI stood at 102.0 in June 2026, with annual inflation at 3.8%, remaining above the RBA 2-3% target band. Sub-components showed standout price pressures up to 6.8% YoY, well above historical averages. Across states, South Australia and Tasmania led annual growth at 4.2%, while Victoria recorded the slowest at 3.2%. Disinflation continues gradually towards target.

Inflation in Australia was 3.8% in the year to June 2026, with the headline CPI index reaching 102.0. This rate remains above the RBA's 2-3% target band and exceeds its long-term average. Despite persistent price pressures in key components, annual inflation is displaying a disinflationary trend towards the central bank's target. Underlying momentum shows annual growth rates across sub-indices ranging between 3.3% and 6.8%, indicating that while general price growth is moderating from peak levels, disinflation towards the target band remains gradual.
A category breakdown reveals substantial divergence in price pressures. Key standout components rose significantly above their 10-year averages, with the highest sub-index standing at 104.6, 8.9% above its historical average of 96.1. Another prominent category reached 104.3 (8.1% above its 96.5 average) with a strong annual growth of 6.8%. Further standouts exceeded historical norms by 7.4% (101.8 vs avg 94.8) and 7.1% (103.7 vs avg 96.8). Conversely, relief was evident in lower-growth segments, where annual inflation moderated to 3.3% with an index level of 103.1.
Across states, inflation metrics show notable variation. For All Groups CPI, South Australia (102.5) and Tasmania led annual growth at 4.2%, followed by New South Wales at 4.0%. Victoria posted both the lowest index level at 101.7 and the slowest annual growth at 3.2%, alongside Western Australia (3.7%). In sub-index categories, South Australia recorded the highest level at 105.5, while Tasmania experienced the fastest annual surge at 9.8%, ahead of South Australia (8.0%). These geographic divergences highlight persistent cost of living pressures that weigh on real wage gains across states.
Headline CPI (All Groups)
102.0
+3.8% YoY (Jun-26), above RBA 2-3% target
Falling
High-Inflation Sub-Index
104.3
+6.8% YoY (Jun-26), 8.1% above 10yr avg (96.5)
Rising
Peak Component Standout
104.6
8.9% above 10-year average of 96.1
Rising
State CPI Growth (SA & TAS)
+4.2% YoY
Fastest state growth rate in Jun-26
Rising

Equities & Superannuation

ASX 200 hits 8,967 in July 2026 as superannuation assets reach $0.4t.
The ASX 200 closed at 8,967 points as at July 2026, recording 2.8% YoY capital growth, trailing its 10-year average of 5.3%. All Ordinaries growth of 1.5% lagged its 5.4% average most among price indices. Superannuation assets stood out at $0.4t, up 39.8% above historical average levels. Market momentum accelerated into August, reaching 9,264 points.

The ASX 200 closed at 8,967 points as at July 2026, registering up 2.8% capital growth over the year. This compares to average annual capital growth of 5.3%. The All Ordinaries reached 9,122 points, up 1.5% capital growth over the year against its 5.4% 10-year average. Total market capitalisation of $3.4 trillion expanded 3.9% YoY, below its 7.4% historical average. The market maintained a recovering trajectory, with weekly data pushing to 9,264 points in August. Note that these price indices measure capital growth only and exclude dividend distributions.
Superannuation assets total $0.4 trillion ($375.4bn), marking the nation's key standout asset class. This level sits up 39.8% above its 10-year average of $268.6bn, reflecting long-term wealth accumulation despite recent capital growth moderation in equities. As Australia's core retirement savings pool, the superannuation system continues to expand its structural footprint, providing steady liquidity across domestic and international financial markets while supporting per capita retirement wealth accumulation.
Market context remains anchored by sector rotation, with financials and materials underpinning recent resilience while interest rate sensitivity weighs on real estate trusts. Recent weekly data through early August shows accelerating momentum, with the ASX 200 lifting to 9,264 points and All Ordinaries to 9,445 points. While annual price returns remain below 10-year historical averages, robust superannuation inflows and steady corporate earnings position Australian equities for continued gradual growth as macroeconomic conditions stabilize.
Superannuation Performance Index
$375.4bn
+39.8% vs 10yr avg ($268.6bn)
Rising
ASX 200 Capital Growth
+2.8%
-2.5pp vs 10yr avg (+5.3%)
Rising
All Ordinaries Capital Growth
+1.5%
-3.9pp vs 10yr avg (+5.4%)
Falling
ASX Market Capitalisation
$3.4t
+3.9% YoY vs 10yr avg (+7.4%)
Rising

Retail Trade

Supermarket turnover dominates at $145.6B as non-discretionary spending outpaces discretionary
Australia's retail landscape reflects entrenched consumer priorities toward essential spending amid cost-of-living pressures, with supermarket and grocery turnover reaching $145.6 billion annually through June 2025—up 137.3% from the September 2006 baseline of $61.3 billion. This non-discretionary category's dominance underscores households' focus on food and basic necessities even as discretionary budgets compress. The "Other Retail" category totaled $70.1 billion (up 160.6% from baseline), while electrical and electronics reached $26.2 billion (up 66.5%) and specialised food stores recorded $13.0 billion (up 79.9%). The divergent growth rates reveal sector-specific dynamics: supermarkets benefit from population growth and food inflation that mechanically lifts nominal turnover; electrical/electronics faces online competition and price deflation that constrains dollar growth despite volume increases; and specialised food captures premiumization trends as consumers trade up to artisan bakeries, butchers, and organic retailers. Retail patterns demonstrate the squeeze on household budgets—necessities claim growing wallet share while discretionary categories face volume pressure. The data encompasses both in-store and online sales, with e-commerce penetration varying dramatically by category and reshaping traditional retail economics.

Supermarket and grocery turnover reached $145.6 billion on an annual rolling basis through June 2025, representing 137.3% growth from the September 2006 baseline of $61.3 billion. This substantial nominal expansion stems from three reinforcing factors: population growth of approximately 30% over the period mechanically increased the customer base; food price inflation substantially outpaced general CPI, with fresh produce, meat, and packaged goods all experiencing multi-decade price increases; and consumption patterns shifted toward eating at home rather than dining out as restaurant prices surged and household budgets tightened. The absolute turnover figure of $145.6 billion translates to roughly $5,300 per capita annually in supermarket spending, highlighting groceries' substantial claim on household budgets. Market concentration in this sector proves extreme, with Woolworths and Coles commanding approximately 65-70% combined market share, followed by Aldi, IGA, and smaller independent operators. This duopoly structure generates ongoing political and regulatory scrutiny around pricing power, supplier treatment, and consumer choice—particularly during periods of elevated food inflation when margin expansion attracts criticism. The pandemic accelerated online grocery adoption, with click-and-collect and home delivery services now comprising an estimated 10-15% of supermarket sales compared to minimal penetration pre-2020. However, the high costs of online fulfillment—picking, packing, refrigerated transport—squeeze margins and raise questions about long-term profitability of digital grocery channels at current pricing.
Electrical and electronics retail turnover totaled $26.2 billion annually through June 2025, up 66.5% from the September 2006 baseline of $15.7 billion—the weakest growth rate among major retail categories despite technology's increasing importance in daily life. This subdued nominal growth masks dramatic volume expansion: Australian households purchased vastly more devices, appliances, and electronics over the period, but unit prices declined sharply due to manufacturing efficiency gains, technology commoditization, and intense online competition. Categories like televisions, computers, and smartphones saw 50-80% price deflation over the past two decades even as specifications improved dramatically, creating a headwind for dollar turnover growth. The "Other Retail" category reached $70.1 billion, up 160.6% from the $26.9 billion baseline—a broad bucket encompassing clothing, footwear, furniture, homewares, sporting goods, and various specialty retail segments. This category's strong nominal growth reflects both population expansion and premiumization trends in segments like activewear, furniture, and homeware where consumers traded up to higher-quality products. However, the aggregate figure conceals sharp divergence: fast fashion and discretionary apparel faced margin pressure and market share loss to online competitors, while furniture and homewares benefited from pandemic-era nesting behaviors and sustained housing market activity that drove demand for furnishings and renovations. Specialised food retail—artisan bakeries, butchers, delis, organic grocers—recorded $13.0 billion in turnover, up 79.9% from $7.2 billion, capturing the premiumization of food consumption as higher-income households sought quality, provenance, and specialty products beyond supermarket offerings.
The retail sector's compositional dynamics reveal broader shifts in consumer behavior, household budget allocation, and competitive landscapes. Supermarkets' commanding 60% share of the captured retail categories ($145.6B of ~$255B total) reflects food's non-discretionary status and limited substitution possibilities—households must eat regardless of economic conditions, providing grocery retailers with defensive earnings characteristics. The weak electrical/electronics growth despite technological proliferation demonstrates how price deflation can overwhelm volume gains, creating challenging economics for bricks-and-mortar retailers competing against online pure-plays with lower overhead structures. Amazon's entry into the Australian market intensified this pressure, forcing incumbent retailers to match prices while bearing higher cost structures—Officeworks, JB Hi-Fi, and Harvey Norman all faced margin compression as they invested in online capabilities and price competitiveness. The rise of specialised food retail signals income polarization: higher-earning households increased spending on premium food experiences and artisan products, supporting independent retailers and niche chains, while cost-conscious households concentrated spending at discount supermarkets and focused on value. Per-capita retail spending growth substantially lagged income growth over the period, indicating declining retail share of household budgets as housing costs, utilities, and services claimed increasing portions of disposable income. Looking forward, retail faces persistent headwinds from elevated mortgage servicing costs that suppress discretionary spending, ongoing e-commerce penetration that advantages low-cost operators, and potential consumption weakness if labor market softening reduces income growth. The essentials-focused spending pattern appears entrenched, with supermarkets likely maintaining dominance while discretionary categories face volume pressure absent meaningful real income growth that restores household purchasing power.
Supermarket and grocery turnover
$145.6B annually
+137.3% from 2006 baseline, dominates retail landscape
Strong
Electrical/electronics growth
+66.5% since 2006
Weakest growth despite tech proliferation—price deflation overwhelms volume gains
Constrained
Other retail category
$70.1B annually
+160.6% from baseline, but conceals divergence between winners and losers
Mixed
Specialised food retail
$13.0B annually
+79.9% from baseline, premiumization trend among higher-income households
Rising
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