Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 8 May 2026 2,788 Indicators

Market Overview

May 2026 Economic Summary

RBA Pulls the Trigger: Persistent Inflation Forces 4.35% Cash Rate Reset

The Reserve Bank has finally lost patience with Australia's stubborn inflationary pulse, lifting the cash rate to 4.35% in a move that signals the 'higher for longer' era is far from over. With consumer prices shocking the market at 4.6% and services costs refusing to buckle, the Board's decision marks the third hike this year, directly challenging a household sector already grappling with record housing costs and contracting real wages.

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Market Snapshot As at 8 May 2026
4.35% RBA Cash Rate
9,107 All Ordinaries
8,878 S&P/ASX 200
5.00% 10yr Bond
USA
0.7208 AUD/USD
China
4.9006 AUD/CNY
UK
0.5313 AUD/GBP

Key Economic Indicators

Click to navigate
Indicator As At Units Latest -1yr -2yr -3yr -4yr -5yr
GDP 2025-Dec $m 693,772 (+2.6%) 676,456 (+1.2%) 668,330 (+1.3%) 659,723 (+3.2%) 638,966 (+4.9%) 609,132
CPI 2026-Mar Index 102.44 (+4.6%) 97.96 (+2.4%) 95.68 (+3.6%) 92.34 (+7.0%) 86.28 (+5.1%) 82.10
Population 2025-Sep Persons 27,724,744 (+1.6%) 27,301,149 (+1.8%) 26,831,131 (+2.5%) 26,169,314 (+1.8%) 25,704,774 (+0.3%) 25,633,341
Employment 2026-Mar Persons ('000) 14,768 (+1.8%) 14,509 (+1.9%) 14,238 (+2.2%) 13,935 (+4.1%) 13,392 (+3.4%) 12,954
Unemployment 2026-Mar % 4.25 (+19bps) 4.06 (+18bps) 3.88 (+30bps) 3.58 (-39bps) 3.97 (-170bps) 5.67
Job Ads 2026-Mar No 641,803 (-0.1%) 642,314 (-14.0%) 746,499 (-11.9%) 847,148 (+2.2%) 829,137 (+33.2%) 622,589
Household Spending 2025-Sep $m 232,015 (+5.1%) 220,838 (+2.8%) 214,921 (+6.6%) 201,614 (+28.4%) 156,982 (-0.4%) 157,628
House Prices 2025-Dec $000s 1,094 (+8.4%) 1,009 (+5.5%) 956 (+7.2%) 892 (-5.1%) 940 (+27.9%) 735
Attached Prices 2025-Dec $000s 741.00 (+8.7%) 682.00 (+4.6%) 652.00 (+6.7%) 611.00 (-5.1%) 644.00 (+7.2%) 601.00
Dwelling Approvals 2026-Mar No 197,971 (+8.7%) 182,052 (+10.8%) 164,307 (-10.9%) 184,488 (-14.6%) 216,018 (+7.0%) 201,872
Superannuation 2025-Sep $bn 4,466 (+9.4%) 4,082 (+13.4%) 3,599 (+9.7%) 3,281 (-4.4%) 3,434 (+18.5%) 2,897
ASX All Ords 2026-Apr Index 8,887 (+6.5%) 8,341 (+5.2%) 7,932 (+5.7%) 7,501 (-2.9%) 7,725 (+6.0%) 7,291

Infrastructure & Major Projects

Transforming Australia's future

Sample 16 Active

AI Generated Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

NSW

Irvine Street Gwynneville Precinct Planning Proposal

A major urban renewal project led by Homes NSW to rezone approximately 134 lots in the Gwynneville precinct. The proposal aims to replace aging 1950s social housing with up to 1,25

$400M 2032 Under Assessment
NSW

Sydney Metro City and Southwest

A 30km metro rail extension connecting Chatswood to Bankstown via the Sydney CBD. The Chatswood to Sydenham section, featuring a new harbour crossing and seven CBD stations, opened

$22.5B 2026 Construction
VIC

Sunshine Superhub and Albion Station Upgrade

A major transformation of Sunshine Station into a transport superhub and the complete rebuild of Albion Station as part of Melbourne Airport Rail Stage 1. The project involves 6km

$4.1B 2030 Construction
QLD

Future BNE Master Plan

A 5 billion dollar transformation of Brisbane Airport to support 50 million annual passengers by 2040 and the 2032 Olympic Games. The program includes over 150 projects. As of May

$5.0B 2035 Construction
QLD

Wellcamp Aerospace and Defence Precinct

Wagner Corporation is developing a 430-hectare master-planned aerospace and defence precinct at Toowoomba Wellcamp Airport. Officially launched in May 2025, the precinct is anchore

$1.4B 2028 Construction
VIC

Armstrong Creek Growth Area Development

The Armstrong Creek Growth Area is Victoria's largest contiguous urban growth zone, spanning 2,500 hectares south of Geelong. This master-planned community is designed to accommoda

$10.1B 2040 Construction
SA

Whyalla GREENSTEEL Transformation

A nationally significant industrial program to transition the Whyalla Steelworks into a world-leading low-carbon facility. The project replaces coal-based blast furnaces with an El

$2.4B 2030 Under Assessment
WA

Australian Renewable Energy Hub (AREH)

The Australian Renewable Energy Hub (AREH) is a giga-scale renewable energy project in the East Pilbara region. Spanning over 6,500 km2, it intends to deliver 26 GW of combined sol

$55.0B 2038 Planning
ACT

Molonglo Town Centre

Molonglo Town Centre is Canberra's sixth town centre, designed as a 97-hectare precinct to serve as the commercial and community heart of the Molonglo Valley. As of early 2026, the

$850M 2045 Planning
SA

Southwark Grounds

A 1 billion dollar urban renewal project transforming the historic 8.4-hectare former West End Brewery site. The development features approximately 1,300 diverse homes including at

$1.0B 2029 Construction
WA

Fortescue Port Hedland Operations Decarbonisation and Modernisation

Comprehensive decarbonisation and modernisation of Fortescue's Port Hedland facilities as part of its Real Zero terrestrial emissions target by 2030. The Herb Elliott Port at Ander

$950M 2030 Construction
NT

Middle Arm Sustainable Development Precinct

A 1,500-hectare industrial hub designed for low-carbon industries including green hydrogen, carbon capture and storage (CCS), and critical minerals processing. The precinct serves

$1.5B 2035 Planning
NSW

Huntlee New Town

Huntlee is the Hunter Valley's first new town in over 50 years, a 1,500-hectare masterplanned community by LWP Group designed to grow into a town of around 20,000 residents across

$1.5B 2045 Construction
NSW

Melrose Park Urban Renewal Precinct

A 30-hectare urban renewal precinct transforming former industrial land in Sydney's north-west into a mixed-use community. The masterplan will deliver over 5,500 homes, a 30,000sqm

$5.0B 2030 Construction
VIC

Suburban Rail Loop - Doncaster Station

Doncaster Station is a key underground component of the Suburban Rail Loop (SRL) North, providing the first-ever rail connection to the Manningham LGA. Located at Doncaster Hill, t

$132.5B 2053 Planning
NSW

Maitland Local Housing Strategy 2041

The Maitland Local Housing Strategy 2041 is a comprehensive framework adopted by Council in June 2023 and endorsed by the NSW Government in September 2024. It manages residential g

2041 Approved

GDP & Economic Output

National GDP reaches $2.75 trillion as mining and finance drive growth
Australian GDP totalled $693.8bn in the December Quarter of 2025, reaching $2.75t over the rolling year. This 2.6% annual growth remains above the 10-year average of 2.2%, driven by strong mining and financial services output. However, per capita growth of 1.0% highlights a volume-led expansion. States are diverging, with WA and Queensland outperforming while NSW and Victoria moderate.

Australian GDP totalled $693.8bn in the December Quarter of 2025, reaching a combined $2.75t over the rolling year. This 2.6% annual growth is above the 10-year average of 2.2%, although the pace is moderating as the economy faces headwinds from elevated interest rates and global energy shocks. While headline expansion remains positive, the rolling annual growth rate has eased to 2.0%, suggesting the cycle is entering a more subdued phase. Despite this cooling, the current level of output reflects a resilient resource sector and robust financial activity.
GDP per capita stood at $25,023 per person for the quarter, or approximately $100,092 per person annually. On a per capita basis, the economy grew by just 1.0% over the past year. This reveals a significant divergence from headline figures: while total GDP grew by 2.6%, the prosperity gains for individuals were diluted by strong population growth. Although this 1.0% per capita expansion is slightly above the 10-year average of 0.7%, it highlights that much of the national economic growth is being driven by volume rather than fundamental productivity improvements.
Industry performance shows a clear "two-speed" dynamic. Mining output grew by 3.7%, significantly outpacing its 10-year average of 1.3%, while Financial Services surged by 4.8% against a 2.6% trend. Accommodation also showed strength with 4.2% growth. Conversely, Professional Services contracted by 0.4%, a sharp reversal from its typical 4.0% growth rate, and Health's 2.5% expansion trailed its 5.1% historical average. This suggests that while resource and financial sectors provide a strong floor for GDP, professional services are stalling under current fiscal and monetary settings.
Financial Services Growth
4.8%
2.2pp above 10yr avg
Rising
Mining Output Growth
3.7%
2.4pp above 10yr avg
Rising
Professional Services Growth
-0.4%
4.4pp below 10yr avg
Falling
GDP per Capita Growth
1.0%
0.3pp above 10yr avg
Stable

Population & Migration

Australia's population hits 27.7 million as migration levels moderate.
Australia's population reached 27.72 million in September 2025, an annual increase of 423,600 persons (1.6%). This growth rate is slightly above the 10-year average of 1.5% but reflects a moderation from the 1.8% recorded a year prior. Net overseas migration remains the primary driver at 311,000 persons, though natural increase has emerged as a relative standout performer.

Australia's population reached 27.7 million as at September 2025, an increase of 423,600 persons (1.6%) over the year. This 1.6% growth is above the 10-year average of 1.5%, though it marks a slowing trajectory from the 1.8% growth rate seen twelve months ago. Growth is normalising from the post-COVID surge as migration intake stabilizes. The data suggests that while population expansion remains robust, it has peaked and is now returning toward historical norms as policy tightening in certain visa categories takes effect.
Total growth is comprised of 311,000 persons from net overseas migration and 114,600 persons from natural increase (births minus deaths), while net interstate migration for the nation is zero. While overseas migration remains significantly elevated relative to its historical baseline, it has declined 14.9% over the year. Natural increase is the standout component; its 8.9% growth rate sits 11.4 percentage points above its 10-year average of -2.5%. This indicates that domestic natural increase is providing a robust floor to national growth even as migration levels temper.
Western Australia leads the states with 2.2% population growth, followed by Victoria and Queensland at 1.7% each, while Tasmania (+0.3%) and South Australia (+1.1%) lag. Interstate migration patterns continue to favour Queensland and South Australia as net gainers, with New South Wales and Victoria recording net losses to other states. This internal redistribution is exacerbating the housing shortage and adding to service-sector inflation in high-growth regions, a trend the RBA is watching closely as it balances demand-side pressures against national infrastructure capacity.
Total Population
27.7 million
1.6% growth is above 10yr avg of 1.5%
Falling
Natural Increase
114,600
8.9% growth vs 10yr avg of -2.5%
Rising
Net Overseas Migration
311,000
-14.9% growth remains above historical levels
Falling
Western Australia Pop Growth
2.2%
Fastest growing state in Australia
Rising

Development Activity

Attached dwelling approvals drive a recovery in the national housing pipeline
Australia recorded 198,000 dwelling approvals in the year to March 2026, an 8.7% annual increase. While growth is well above the 10-year average of -1.3%, the level of 7.0 approvals per 1,000 people remains 8.9% below the historical average. Attached dwelling approvals (+17.5%) are the primary growth driver. The ACT and NT lead state growth, while Victoria remains the primary laggard.

198,000 dwellings were approved in Australia in the year to March 2026. This is 8.9% below the 10-year average level of approximately 217,344 units. On a per capita basis, there were 7.0 approvals per 1,000 persons, which remains below the long-term average of 8.0. Despite the level being below historical norms, the pipeline is showing signs of recovery with annual growth of 8.7%, significantly outperforming the 10-year average growth rate of -1.3%. This suggests approvals have troughed and are now on a steady upward trajectory despite recent monthly volatility in March.
The development pipeline comprises 198,000 approvals (8.9% below 10yr avg), 196,000 commencements in the year to December 2025 (8.9% below 10yr avg), and 172,200 completions (16.5% below 10yr avg). A clear bottleneck exists at the final construction stage, where completions lag significantly further below average than preceding stages. While conversion to commencements is tracking the approval recovery with 16.1% growth, the 2.7% annual decline in completions highlights delivery challenges. Growth is led by high-density projects, with attached approvals (+17.5%) outperforming houses (+3.1%).
State performance varies significantly; the ACT (+70.8%) and NT (+18.9%) lead approval growth, while Victoria (-4.1%) is the only state to record a contraction. For commencements, the Northern Territory (+47.1%) and New South Wales (+24.2%) lead the national recovery. Commercial activity is anchored by the retail sector, where development value grew 8.5%, exceeding its 10-year average of 3.4%. In contrast, the industrial and office sectors grew by 6.5% and 4.4% respectively, both trailing their long-term averages by over 4 percentage points as high interest rates constrain activity.
Attached Dwelling Approvals
+17.5%
20.2pp above 10yr avg growth
Rising
Dwelling Commencements
196,000
16.1% growth vs -0.5% 10yr avg
Rising
Dwelling Completions
172,200
16.5% below 10yr avg level
Falling
Retail Development Value
+8.5%
5.1pp above 10yr avg growth
Rising

Housing Market

Regional house prices surge 11.2% as national capital values reach $1.09 million
The national median house price reached $1,090,000 in December 2025, up 8.4% annually. Regional markets outperformed with 11.2% growth, well above the 6.9% decade average. While capital city attached affordability improved to 6.69x income, regional house multiples are straining at 6.64x. Northern Territory and Queensland lead growth, while Victoria and New South Wales see significant moderation.

The median house price across Australian capital cities reached $1,090,000 in December 2025, up 8.4% over the year. This growth remains elevated compared to historical norms, such as the 3.1% decade average seen in the attached sector, though momentum is becoming increasingly fragmented. Regional house prices reached $735,000, up 11.2% annually, significantly outpacing the 10-year average growth of 6.9%. While headline values remain at record highs, the trajectory suggests a shift toward regional hubs as the premium capital city bull run begins to moderate from previous peaks.
Regional houses are currently priced at 6.64x annual household income, which is 6.6% above the 10-year average of 6.23x, placing them in the seriously unaffordable category. Conversely, capital city attached dwellings at 6.69x income offer improved affordability compared to their long-term average of 7.63x, a 12.3% improvement. Regional attached dwellings at 6.18x income also remain 8.9% above their 5.67x historical average. These figures highlight significant strain on regional household budgets, even as urban apartments show relative value compared to historical long-term norms.
Sales volumes for capital city attached dwellings fell 0.2% over the year, trailing the 2.5% decade average. Price growth is strongest in the Northern Territory (+27.0%), Queensland (+17.6%), and Western Australia (+16.0%), while Victoria (+2.9%) and the ACT (+4.2%) are the slowest growing markets. Affordability is most strained in New South Wales, where capital city houses average $1.51 million. The national market is increasingly two-speed; high demand drives double-digit growth in secondary capitals, while the largest markets face headwinds from high entry costs and buyer fatigue.
House Price (Regional) Growth
11.2%
4.3pp above 10yr avg
Rising
Attached Price (Capitals) Growth
8.7%
5.6pp above 10yr avg
Rising
Attached Price to Income (Capitals)
6.69x
12.3% below 10yr avg
Falling
House Price (Capitals)
$1,090,000
8.4% annual growth
Stable

Housing Finance

Investor activity surges 31.9% as total housing finance reaches $140.2 billion
Total housing finance commitments reached $140.2 billion in December 2025, representing a 14.3% annual increase. Growth is significantly outperforming the 10-year average of 3.2%, driven by a 31.9% surge in investor lending. Tasmania and New South Wales lead lending growth, while South Australia shows more moderate patterns as the market adapts to higher interest rates.

Housing finance commitments totalled $140.2bn in December 2025, up 14.3% compared to a year ago. Lending volumes are 11.1 percentage points above the 10-year average growth rate of 3.2%, signaling a strong recovery in market activity. Total finance has recovered from previous cyclical lows, though the trajectory suggests a shift toward higher-risk lending. Despite the cash rate hitting 4.1%, the appetite for new credit remains elevated as participants adjust to the prevailing interest rate environment and focus on refinancing options.
Owner-occupier lending totalled $94.8bn (67.6% of total), while investor lending rose to $45.4bn (32.4% of total). Owner-occupier lending grew 7.5% annually, outperforming its 10-year average growth of 1.2%. The standout is the investor segment, which surged 31.9%, dwarfing its long-term average growth of 12.8%. Investors now account for 32.4% of new lending, reflecting a significant shift in market dynamics. This increased participation suggests expectations of capital growth and rising rental yields are offsetting higher debt-servicing costs.
Lending growth exhibits divergence across states, with Tasmania (+21.7%) and New South Wales (+19.3%) recording the strongest increases in total commitments. Conversely, growth was more subdued in Western Australia (+8.2%) and South Australia (+6.4%). New South Wales remains the largest market by value at $42.2bn. In the owner-occupier segment, growth in Western Australia and South Australia stalled at just 0.8%, highlighting affordability constraints. High debt-to-income ratios and interest rates are impacting participation, particularly for first home buyers.
Investor Lending Growth
31.9% YoY
19.1pp above 10yr average
Rising
Total Finance Value
$140.2bn
11.1pp above 10yr avg growth
Rising
Owner-Occupier Growth
7.5% YoY
6.3pp above 10yr average
Stable
Tasmanian Lending Growth
21.7% YoY
Fastest growing state market
Rising

Monetary & Financial Conditions

RBA Resumes Tightening as Persistent Inflation Forces Cash Rate to 4.35%
The RBA cash rate stands at 4.35% as of May 2026, marking a 13.0% annual increase and sitting 7.4% above the 10-year average of 4.05%. This move follows 75bp of cumulative tightening since January 2026 as policymakers combat stubborn price pressures. Mortgage holders face variable rates of 6.55%, while bond markets signal a restrictive 'higher for longer' environment.

The RBA cash rate stands at 4.35% as at May 2026. This is above the 10-year average of 4.05%. The cash rate has been on an upward trajectory recently, following 75 basis points of hikes since January 2026. The RBA raised rates by 25 basis points in May, the third move in the current tightening sequence. This brings the cumulative move to 425bp of tightening since the cycle commenced in May 2022, as the Board responds to inflation proving more persistent than forecast, particularly in domestic services and oil-related sectors.
The transmission of policy to borrowers is evident in mortgage rates, with the owner-occupier variable rate at 6.55% and the 3-year fixed rate at 6.73% as of April 2026. This represents a 2.20% spread over the cash rate for variable products, while investor rates sit 33bp higher at 6.88%. Mortgage holders face rates 1.45% higher than the 10-year average of 5.10%, significantly impacting household budgets. Fixed-rate products have risen 13.3% over the year, further stretching the capacity of those rolling off legacy low-rate facilities.
Bond market signals reflect a restrictive sentiment, with 2-year yields at 4.54% and 10-year yields at 4.93%. The positive yield curve spread of 39bp suggests markets expect normal conditions where growth eventually resumes, though uncertainty remains high. This positive yield curve suggests markets expect stability or further tightening rather than imminent rate cuts. Both yields are substantially elevated, with the 2-year bond 111.6% above its 10-year average, confirming that the path to monetary easing remains closed for the foreseeable future.
RBA Cash Rate
4.35%
7.4% above 10yr avg
Rising
Australian 2-Year Bond
4.54%
111.6% above 10yr avg
Rising
3-Year Fixed Mortgage
6.73%
46.8% above 10yr avg
Rising
Variable Mortgage Rate
6.55%
28.4% above 10yr avg
Stable

FX Rates & Commodities

Strong AUD and rural commodity growth offset softening mining prices as the TWI remains elevated.
The Australian dollar reached US$0.7100 in April 2026, marking a 10.9% increase over the year and sitting 7.7% above its 10-year average. The trade-weighted index remains strong at 66.30, 7.8% above historical norms. While mining commodity growth of 3.7% trails its long-term average, rural commodities have outperformed at 10.8%. The currency maintains an upward trajectory.

The Australian dollar is trading at US$0.7208 as at 8 May 2026. The trade-weighted index stands at 66.30 as at April 2026. The AUD level of 0.7100 in April is 7.7% above its 10-year average of US$0.6600, while the TWI is 7.8% above its 10-year average of 61.51. Over the year, the currency has appreciated 10.9% against the greenback and 10.7% on a trade-weighted basis. The trajectory remains elevated as recent weekly spot rates exceed April averages, driven by relative central bank hawkishness and a robust trade-weighted position.
Major bilateral crosses show significant strength against historical benchmarks. The AUD/USD at 0.7100 and AUD/EUR at 0.6100 reflect broad appreciation, while the AUD/JPY at 114.2800 is a standout, trading 16.5% above its 10-year average of 98.0700. Weekly spot rates for the AUD/CNY at 4.9006 and AUD/GBP at 0.5313 further highlight the currency's robust position. This strengthening across major trade partners improves purchasing power but presents headwinds for export competitiveness in non-commodity sectors, particularly as China trade remains critical.
The commodity price index in AUD terms grew by 4.6% in April 2026, which is 4.8 percentage points below the 10-year average of 9.4%. Performance is bifurcated: mining commodities grew at 3.7%, well below the 9.9% average, while rural commodities surged by 10.8%, outperforming their 5.8% average by 5.0 percentage points. Despite softening mining prices, the elevated terms of trade and gold spot price of $6,517/oz support a positive AUD outlook, even as global growth concerns weigh on industrial commodity demand and impact the mining-heavy trade balance.
AUD / JPY
114.2800
16.5% above 10-year average
Rising
AUD / USD
0.7100
10.9% annual appreciation
Rising
Rural Commodities AUD
+10.8%
5.0pp above 10-year average growth
Rising
Mining Commodities AUD
+3.7%
6.2pp below 10-year average growth
Falling

Employment

Labour market softens as unemployment edges to 4.3% despite resilient full-time job growth.
Australia's unemployment rate rose to 4.3% in March 2026, now exceeding the 10-year average of 4.0%. While annual employment growth of 1.8% remains resilient, a 7.0% surge in unemployed persons marks a significant shift in trajectory. South Australia leads state growth at 2.6%, while Victoria’s 4.8% unemployment rate highlights emerging regional weakness as the national market moderates.

The unemployment rate in Australia stands at 4.3% as at March 2026. This is above the 10-year average of 4.0%, marking a transition away from the historic lows seen in recent years. The rate has risen from a trough in early 2025, up 0.3 percentage points as the labour market begins to soften in response to broader economic cooling. While still low by long-term standards, the upward trajectory indicates that the period of extreme tightness has concluded, with the market now shifting towards a more balanced, albeit softening, state.
Total employment reached 14.8 million persons, up 1.8% over the year. This growth is supported by full-time positions, which rose 1.9% to 10.2 million, indicating a relatively high quality of job creation. However, the 7.0% increase in the number of unemployed persons is significantly above the 10-year average growth of -0.1%, suggesting that while businesses are largely retaining existing staff through labor hoarding, new entrants are finding fewer opportunities. Full-time roles accounted for the majority of gains, reflecting a preference for permanent staff.
State-level data reveals a growing divergence between jurisdictions. Queensland maintains the lowest unemployment rate at 3.7%, whereas Victoria recorded the highest rate at 4.8%. Employment growth is strongest in South Australia (+2.6%) and Queensland (+2.3%), while Tasmania recorded a contraction of 0.6%. These figures highlight a clear split, with the resource-heavy and northern states continuing to absorb labour effectively, while the south-eastern states experience more pronounced softening in their respective job markets.
Unemployed Persons
+7.0%
Well above 10yr avg growth of -0.1%
Rising
Unemployment Rate
4.3%
0.3pp above the 10yr average of 4.0%
Rising
Full-Time Employment
10.2 million
Solid 1.9% YoY growth despite slowing economy
Stable
Employment Growth (SA)
+2.6%
Leading the nation in annual job creation
Rising

Job Advertisements

Australian job ads cool to 641,803, remaining 2.8% above 10-year averages.
Job advertisements in Australia totalled 641,803 in March 2026, falling 0.1% over the year. While hiring demand remains 2.8% above the 10-year average, volumes have retracted 24.2% from the 2023 peak. Industrial roles lead growth at 1.9%, whereas the ACT saw the sharpest annual decline of 13.1%. The results signal a moderating labor market as hiring intentions normalize toward historical levels.

Job advertisements in Australia totalled 641,803 in March 2026, a leading indicator signalling a cooling in forward employment demand. This level is 2.8% above the 10-year average of 624,227. Job ads remain 2.8% above the 10-year average despite falling 24.2% from the post-pandemic peak of 847,148 recorded in March 2023. Year-on-year, volumes are down 0.1% compared to a year ago. This trajectory suggests that while the labor market is softening from its extreme tight conditions, hiring intentions remain healthy relative to the long-term cycle and are not indicative of a collapse.
Compositional data reveals a shift in demand across sectors. Professional ads reached 186,476, which is 3.8% above its 10-year average, while Industrial and Trades ads at 129,714 remain 9.7% above average. Conversely, Sales job ads have fallen to 30,627, representing a 0.3% level below the historical mean. Industrial ads are the standout category, remaining significantly above average and signalling persistent demand in technical and trade sectors. This divergence indicates weakening demand in consumer-facing industries while technical roles provide a floor for hiring activity.
State-level trends highlight diverging cycles across the country. South Australia (+4.0%) and Western Australia (+3.2%) lead national growth, with job ads in these states remaining most elevated above their historical averages. In contrast, the ACT (-13.1%) and Northern Territory (-7.3%) have seen the sharpest declines from peak levels, suggesting these markets are leading the national cooling trend. This normalization, as noted by market observers, marks a shift toward an employer's market where competition for roles is increasing even as skills shortages persist in technical occupations.
Total Job Ads
641,803
2.8% above 10yr avg
Falling
Industrial Job Ads
129,714
9.7% above 10yr avg
Rising
Professional Job Ads
186,476
3.8% above 10yr avg
Rising
ACT Job Ad Growth
-13.1%
Slowest state growth
Falling

Wages & Earnings

Australia's wage growth moderates to 3.4% as inflation erodes real income gains
Wages grew 3.4% annually in the December 2025 quarter, a moderation from the 3.9% recorded in the previous quarter. While nominal full-time earnings reached $2,129 per week, persistent inflation of 3.8% has resulted in a -0.4% decline in real wages. Western Australia continues to lead the nation in both wage growth (+4.1%) and absolute earnings levels, while Victoria and the Northern Territory lag.

Wages grew 3.4% over the year to December 2025, as measured by the Wage Price Index. This remains above the 10-year average wage growth of 2.6%, though the trajectory indicates that momentum has peaked for the current cycle. Annual growth has moderated from 4.1% a year ago and 3.9% in the September quarter, reflecting a gradual easing in labor market tightness. While public sector agreements continue to support the headline rate, private sector gains are cooling as hiring intentions soften and job advertisements decline from post-pandemic highs, suggesting further deceleration in 2026.
Average weekly full-time earnings reached $2,129 per week in November 2025, which annualises to $109,517 per year for full-time workers. Despite these nominal gains, the impact on household budgets is increasingly constrained. With inflation at 3.8%, real wage growth was negative 0.4%, meaning workers experienced a loss in purchasing power over the year. This outcome is worse than the 10-year average real wage growth of 0.4%. While nominal wages grew 4.0%, the persistence of services inflation has eroded these gains, keeping household consumption under pressure as the cost-of-living squeeze continues.
State-level data reveals significant divergence in wage outcomes across the country. Western Australia remains the national leader, recording the fastest Wage Price Index growth of 4.1% and the highest earnings level at $2,304 per week, bolstered by the resilient resource sector. New South Wales and the ACT also recorded strong WPI growth of 3.7%, with NSW leading on earnings growth (+4.7%). In contrast, Victoria and Queensland saw more moderate gains of 3.2% and 3.3% respectively, while the Northern Territory trailed at 2.2%. Tasmania remains the lowest earner at $1,890 per week.
Wage Price Index Growth
3.4%
Moderating from 4.1% a year ago but remains above 2.6% average
Falling
Real Wage Growth
-0.4%
Inflation of 3.8% eroded nominal gains, trailing 0.4% average
Falling
Average Weekly Earnings (FT)
$2,129
Annualised to $109,517, up 4.0% over the year to Nov-25
Rising
WA Earnings Level
$2,304
Highest in the nation and $175 per week above national average
Rising

Household Consumption

Essential costs crowd out discretionary spending as per capita levels hit $13,645
Australian household consumption reached $378.3bn in Dec-25, up 5.6% YoY. While headline growth remains positive, per capita spending of $13,645 is 20.8% above average, driven largely by essential costs like power (+9.6% growth). Queensland leads state growth (+3.4%), while NSW and Tasmania lag, reflecting a broader moderation as households pivot to defensive spending patterns.

Household consumption expenditure totalled $378.3bn in the Dec-25 quarter, rising 5.6% over the year. This comprehensive National Accounts measure shows a notable expansion, supported by a 4.0% increase in per capita consumption to $13,645. While the aggregate figure appears robust, the per capita level of $13,645 is 20.8% above the long-term average of $11,297, reflecting both inflationary pressures and population-driven demand. This quarterly data highlights a market where headline totals mask significant underlying shifts in household spending patterns.
Essential spending categories are showing divergent trends. Power consumption growth surged to 9.6%, well above its 10-year average of 3.0%, while food expenditure reached $35.8bn, growing 4.5% annually. In contrast, discretionary categories are under pressure as households enter 'bunker mode'. Alcohol consumption growth slowed to just 1.4%, trailing its 3.9% average, and transport growth of 4.5% is sharply below the 26.6% 10-year average. This indicates a clear pivot where rising essential costs, particularly for energy, are crowding out non-essential spending.
Across the states, Queensland led consumption growth at 3.4% YoY, followed by Victoria and Western Australia at 2.5%. New South Wales trailed with 1.9% growth, while Tasmania recorded the slowest expansion at 1.7%. On a per capita basis, the Northern Territory maintains the highest level at $14,006, contrasting with Tasmania’s $11,833. Queensland also led per capita growth at 1.6%, while Western Australia saw the weakest per capita increase at 0.3%. The national trajectory shows moderating momentum as interest rate shocks and high fuel prices weigh on discretionary budgets.
Hhconsumptiontotalpercapita
$13,645
20.8% above long-term average level
Rising
Hhconsumptionpower
+9.6%
6.6pp above 10yr average growth
Rising
Hhconsumptiontransport
+4.5%
22.1pp below 10yr average growth
Falling
Hhconsumptionalcohol
+1.4%
2.5pp below 10yr average growth
Falling

Household Spending

Discretionary spending retreats as households pivot to essentials and healthcare
Australian household spending reached $232.0bn in Sep-25, a 5.1% YoY increase. While total expenditure remains historically high—with per capita annual spending at $33,358—growth is moderating. Essential categories like Health (+8.1%) are outperforming, whereas discretionary areas like Alcohol (-18.0%) are in sharp decline. WA and NT lead growth (+7.1%), while NSW (+3.8%) lags.

Household spending in Australia totalled $232.0bn in September 2025, up 5.1% compared to a year ago. While nominal spending remains elevated, this growth rate is moderating compared to recent peaks. On a per capita basis, Australians are spending $8,368 monthly, equating to $33,358 per person annually. This per capita level sits 20.9% above the long-term average of $27,600, reflecting the sustained impact of price inflation on total transaction values despite a noticeable cooling in consumption volume across most discretionary categories.
The spending breakdown highlights a growing divide between essential and discretionary items. Essential categories like Health (+8.1%) and Miscellaneous (+8.7%) are growing significantly faster than their respective 10-year averages of 6.1% and 5.3%. Conversely, signs of consumer stress are evident in discretionary pullbacks; Alcohol spending fell a staggering 18.0% against a typical 0.2% growth average, while Hotels and Restaurants (+6.1%) and Clothing (+3.3%) both lagged their historical averages of 8.2% and 5.4%, indicating a sharp reshuffle in the family budget.
State comparisons reveal a two-speed consumption landscape. Western Australia and the Northern Territory lead the nation with 7.1% annual growth, significantly outperforming the national average. In contrast, slower growth is observed in New South Wales (+3.8%), Victoria (+3.4%), and the ACT (+3.4%), where higher debt servicing costs and cost-of-living pressures are most acute. This regional divergence suggests that while resource-linked economies remain resilient, households in major metropolitan centers are increasingly prioritizing essentials over discretionary lifestyle spending.
Alcohol Spending
-18.0%
18.2pp below 10yr avg
Falling
Health Services
+8.1%
2.0pp above 10yr avg
Rising
Annual Per Capita Spend
$33,358
20.9% above long-term avg level
Rising
WA & NT Growth
+7.1%
Fastest growing jurisdictions
Rising

Inflation & Cost of Living

Australian inflation shocks with a 4.6% surge, driven by housing and transport pressures.
Headline inflation in Australia rose to 4.6% in the year to March 2026, exceeding the RBA's 2-3% target and the 3.1% decade average. The result marks a sharp re-acceleration from late-2025 lows, driven by acute pressures in housing (+6.5%) and transport (+8.9%). Tasmania recorded the highest growth at 5.1%, while real wages contracted by 1.2% as price gains outpaced earnings.

NOTE: CPI data is now published MONTHLY by the ABS (from April 2024). Inflation in Australia was 4.6% in the year to March 2026, well above the 10-year average of 3.1% and the RBA's 2-3% target band. The annual rate rose from 4.1% in February, marking a nasty shock to markets. The month of March alone added 0.5% to prices, which annualises to a 6.0% pace—well above target. This monthly momentum suggests inflation is re-accelerating from its 2.1% low in late 2025, though it remains below the 7.8% peak recorded in December 2022.
Category breakdowns reveal entrenched services inflation. Housing costs rose 6.5%, standing 8.1% above the 10-year average index level, while transport inflation hit 8.9% (9.1% above average) due to fuel and vehicle pressures. Education costs also remain high at 10.4% above their decade average. Some relief was found in food prices, which moderated to 3.1%, in line with the 3.2% historical average. However, items like liquor (+4.4%) and insurance and financial services (+2.8%) continue to outpace historical norms, keeping cost-of-living pressures elevated for households.
State-level data shows Tasmania experiencing the fastest inflation at 5.1%, followed by South Australia (+4.9%). Slowest growth was in New South Wales (+4.4%) and the ACT (+4.2%), though all jurisdictions remain above target. This broad escalation is eroding purchasing power. With national wage growth at 3.4% as of December 2025, Australian workers experienced negative real wage growth of -1.2%. This re-acceleration, described by analysts as a 'nasty shock,' likely forces the RBA's hand for further tightening in May to curb persistent services momentum.
CPI - Transport
108.4 index
9.1% above 10yr average
Rising
CPI - Housing
103.1 index
8.1% above 10yr average
Rising
CPI - Education
104.6 index
10.4% above 10yr average
Stable
CPI - Alcohol & Tobacco
102.0 index
9.0% above 10yr average
Rising

Equities & Superannuation

ASX 200 Hits Record High as Superannuation Assets Surge to $4.47 Trillion
The Australian share market reached record levels in April 2026, with the ASX 200 closing at 8,665 points and delivering 6.6% annual capital growth, outperforming its 10-year average of 5.6%. Total market capitalisation surged 8.6% to $3.25 trillion, while superannuation assets grew to $4.47 trillion. This robust performance highlights the strength of Australia's national retirement savings pool.

The ASX 200 closed at 8,665 points as at April 2026, while the All Ordinaries reached 8,887 points. This represents 6.6% annual capital growth for the benchmark index, outperforming the 10-year average annual capital growth of 5.6%. Total market capitalisation rose to $3.25 trillion, an 8.6% increase over the year. Indices reached record highs during the month, with the upward trajectory accelerating into early May. By the week ending May 8, 2026, the ASX 200 had risen further to 8,878 points, reflecting strong investor appetite despite some intra-week sector volatility.
Superannuation assets total $4.47 trillion, representing a 9.4% increase over the year. This growth rate comfortably exceeds the 10-year average growth of 8.6%, highlighting the resilience of Australia's retirement savings pool. The superannuation performance index stands at $375.4 billion, which is 39.8% above its long-term average of $268.6 billion. As the cornerstone of Australia's financial system, this substantial and growing asset pool provides significant domestic liquidity and supports long-term investment across the broader economy.
Market context was influenced by fluctuating energy export values and persistent rate hike jitters in early May. While banking stocks faced some pressure mid-week, the broader index showed resilience, finishing the week of May 8 at 8,878 points. Alternatives such as Bitcoin also saw elevated interest, reaching $110,999. Capital growth remains the primary driver of index gains, as these price-only indices exclude dividends. The outlook remains balanced as markets weigh record valuation levels against a restrictive monetary policy environment and global macroeconomic headwinds.
Super Performance Index
$375.4bn
39.8% above 10-year average
Rising
ASX 200 Capital Growth
+6.6%
Outperforming 10yr avg of 5.6%
Rising
Market Capitalisation
$3.25t
8.6% annual growth vs 7.9% avg
Rising
Superannuation Assets
$4.47t
9.4% annual growth vs 8.6% avg
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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