Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 5 Mar 2026 2,788 Indicators

Market Overview

March 2026 Economic Summary

Australia's Economic Crossroads: Growth Masks Deepening Household Strain

Australia's economy presents a tale of two realities. While headline growth accelerates and asset markets hit record highs, the engine room is showing signs of strain. Sticky inflation has forced the RBA into a hawkish corner, and rapid population growth is masking a tougher reality for individual households, who are grappling with declining real wages and a severe housing supply bottleneck.

View by State: AUS | NSW | VIC | QLD | SA | WA | TAS | NT | ACT
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Market Snapshot As at 5 Mar 2026
3.85% RBA Cash Rate
9,177 All Ordinaries
8,954 S&P/ASX 200
4.72% 10yr Bond
USA
0.7078 AUD/USD
China
4.8821 AUD/CNY
UK
0.5288 AUD/GBP

Key Economic Indicators

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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-Jan Index 101.33 (+3.8%) 97.58 (+2.6%) 95.08 (+3.9%) 91.50 (+7.5%) 85.08 (+4.0%) 81.78
Population 2025-Jun Persons 27,614,411 (+1.5%) 27,194,286 (+2.0%) 26,659,922 (+2.5%) 26,018,721 (+1.3%) 25,685,412 (+0.1%) 25,649,248
Employment 2026-Jan Persons ('000) 14,704 (+1.0%) 14,554 (+3.0%) 14,129 (+2.4%) 13,798 (+3.7%) 13,302 (+3.6%) 12,844
Unemployment 2026-Jan % 4.08 (-4bps) 4.12 (+3bps) 4.09 (+43bps) 3.66 (-50bps) 4.16 (-211bps) 6.27
Job Ads 2026-Jan No 642,893 (-1.5%) 652,872 (-15.2%) 770,089 (-8.1%) 838,192 (+5.9%) 791,259 (+43.8%) 550,421
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-Sep $000s 1,042 (+6.1%) 982 (+5.6%) 930 (+6.3%) 875 (+2.1%) 857 (+24.4%) 689
Attached Prices 2025-Sep $000s 710.00 (+5.0%) 676.00 (+5.0%) 644.00 (+6.1%) 607.00 (-2.9%) 625.00 (+7.6%) 581.00
Dwelling Approvals 2026-Jan No 192,633 (+9.2%) 176,325 (+6.5%) 165,582 (-13.4%) 191,273 (-15.3%) 225,905 (+19.3%) 189,412
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-Feb Index 9,435 (+12.3%) 8,404 (+5.6%) 7,959 (+6.7%) 7,458 (+1.8%) 7,323 (+5.5%) 6,941

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.

QLD

Redcliffe Peninsula Foreshore Masterplan

A comprehensive revitalisation of the 14km Redcliffe Peninsula coastline. Current major works include the $19.6 million Suttons Beach Pavilion redevelopment, featuring a new retail

$850M 2036 Construction
NSW

Norwest City

A $3 billion+ masterplanned transformation by Mulpha, evolving the 377-hectare Norwest Business Park into a smart city and innovation hub. Key components include Norwest Quarter, a

$3.0B 2045 Construction
QLD

Cairns Marine Precinct Common User Facility

The Cairns Marine Precinct Common User Facility (CUF) is a major maritime infrastructure project delivering a 5,000-tonne shiplift, three hardstand areas, and two climate-controlle

$826M 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
NSW

Sydney Metro West - Western Sydney Airport to Macarthur Corridor (South West Rail Link Extension)

The project involves the preservation of a 20km corridor for a future north-south extension of the Sydney Metro network. It will connect the future Bradfield station (part of the S

$5.1B 2047 Proposed
VIC

Bradmill Yarraville

Bradmill Yarraville is a $1.5 billion urban renewal project transforming a 26-hectare historic denim factory into a sustainable mixed-use community. The development features approx

$1.5B 2031 Construction
SA

Whyalla GREENSTEEL Transformation

A nationally significant industrial program to transition the Whyalla Steelworks into a world-leading low-carbon facility. The project focuses on substituting coal-based blast furn

$2.4B 2030 Under Assessment
WA

Alkimos-Eglinton Satellite City (Alkimos Central)

A 198-hectare transit-oriented satellite city and secondary centre designed to house over 55,000 people in the Alkimos-Eglinton corridor. The precinct features a major retail core,

$8.0B 2070 Construction
SA

Riverlea Estate (Buckland Park Township)

South Australia's largest master-planned community, covering 1,340ha and planned to deliver 12,000 homes for over 40,000 residents. Key features include the $100M Palms Shopping Vi

$3.0B 2046 Construction
WA

Fortescue Port Hedland Operations Decarbonisation and Modernisation

Comprehensive modernisation of Fortescue's Port Hedland facilities to achieve 'Real Zero' terrestrial emissions by 2030. Key work includes upgrading the Herb Elliott Port to a 210M

$200M 2030 Construction
NT

Middle Arm Sustainable Development Precinct

A 1,500-hectare sustainable industrial hub in Darwin Harbour focused on low-carbon industries including renewable hydrogen, carbon capture and storage (CCS), critical minerals proc

$15.0B 2035 Planning
ACT

Molonglo Town Centre

Molonglo Town Centre is the future sixth town centre for Canberra, serving as the primary commercial, civic, and community hub for the Molonglo Valley. The 97-hectare precinct will

$850M 2045 Planning
QLD

Oxley Creek Transformation

A $100 million, 20-year initiative by Brisbane City Council to revitalize a 20km corridor into a world-class green lifestyle destination. Key progress includes the completion of Wa

$100M 2037 Construction
QLD

Wellcamp Aerospace and Defence Precinct

Wagner Corporation is developing a 300-430ha master-planned aerospace and defence precinct at Toowoomba Wellcamp Airport. The precinct is anchored by Boeing's 9,000sqm production f

$1.4B 2028 Construction
QLD

Waraba Priority Development Area (Caboolture West Growth Area)

Declared on 2 August 2024, Waraba is Queensland's 36th Priority Development Area, spanning 2,900 hectares in the City of Moreton Bay. The masterplanned region is designed to accomm

$8.0B 2064 Planning
NSW

Moore Point

Moore Point is a major 32-hectare urban renewal project transforming former industrial land into a mixed-use riverside precinct. The masterplan includes 11,000 homes (including 2,5

$9.0B 2065 Under Assessment

GDP & Economic Output

Economic growth accelerates, but rapid population growth dilutes individual gains.
Australia's economy grew 2.6% to $693.8bn in the December quarter of 2025, outpacing the long-term trend. However, per capita growth was a weaker 1.0% due to strong population growth. The expansion was led by the Mining and Accommodation sectors, while Professional Services lagged significantly.

Australian GDP totalled $693.8bn in the December Quarter of 2025, reaching a combined $2.75t over the rolling year. The year-on-year growth rate of 2.6% is above the 10-year average of 2.0%, indicating an acceleration in economic momentum. This recent pickup suggests that growth, which had been moderating, is now on a stable to upward trajectory, defying earlier expectations of a slowdown.
On a per-person basis, the economic story is more subdued. GDP per capita was $25,123 for the year, with annual growth of just 1.0%. While headline GDP grew 2.6%, the per capita figure reveals that strong population growth diluted these gains significantly. This divergence highlights that the broader economic expansion is not translating into a proportional increase in prosperity for the average individual.
The economic expansion was driven by standout performances in key sectors. Mining output grew 3.7%, significantly outpacing its 10-year average of 1.3%. Similarly, the Accommodation sector expanded by 4.2%, well above its long-term average of 1.8%. In contrast, Professional Services acted as a drag on the economy, contracting by 0.4% against a typical growth rate of 4.0% for the sector.
Quarterly GDP Growth (YoY)
+2.6%
Above 10-year average of +2.0%
Rising
GDP per Capita Growth (YoY)
+1.0%
Significantly lagging headline GDP growth
Stable
Mining Sector Growth (YoY)
+3.7%
Well above 10-year average of +1.3%
Rising
Professional Services Growth (YoY)
-0.4%
Well below 10-year average of +4.0%
Falling

Population & Migration

Population growth moderates as overseas migration slows from record highs.
Australia's population reached 27.6 million in June 2025, with annual growth slowing to 1.5%. This moderation is driven by a sharp 28.8% fall in overseas migration, though it remains the primary growth driver. Growth is now fastest in WA, VIC, and QLD, while NSW and SA lag.

Australia's population reached 27.6 million as at June 2025, an increase of approximately 414,000 persons (1.5%) over the year. This growth rate marks a significant slowdown from the peaks seen in the previous year, suggesting that the post-COVID population surge is now normalising. The trajectory has clearly shifted from acceleration to moderation, aligning with changes in migration policies and global travel patterns.
Population growth was composed of a 305,600 person increase from overseas migration and a 107,400 person increase from natural increase (births minus deaths). The standout feature is the sharp slowdown in overseas migration, with its annual contribution falling by 28.8%—a stark contrast to its 10-year average growth of 32.2%. Despite this slowdown, migration remains the dominant driver of population change. In contrast, the contribution from natural increase grew by 1.9%, outperforming its 10-year average decline of -3.3%.
State-level dynamics show population growth is strongest in Western Australia (+2.2%), Victoria (+1.8%), and Queensland (+1.8%). These states continue to attract a significant share of new residents. Growth was considerably slower in New South Wales (+1.2%), South Australia (+1.1%), and was lowest in Tasmania (+0.2%). The national slowdown in migration growth was most pronounced in Tasmania (-34.3%), Western Australia (-31.8%), and Victoria (-31.4%).
Overseas Migration (Annual Growth)
-28.8%
A sharp reversal from the 10-yr avg of +32.2%
Falling
Total Population Growth
+1.5% YoY
Slowing from post-COVID peaks
Falling
Natural Increase (Annual Growth)
+1.9%
Above the 10-yr avg of -3.3%
Rising
Fastest Population Growth (State)
WA (+2.2%)
Leading all states and territories
Stable

Development Activity

Development pipeline recovers, but completions lag, signalling persistent construction bottlenecks.
Dwelling approvals reached 192,600 in the year to January 2026, a 9.2% annual increase that outpaces the 10-year average. The recovery is led by a 22.1% surge in attached dwelling approvals. However, completions have contracted by 1.9%, indicating a significant bottleneck in converting projects into housing stock. Growth is strongest in the ACT and NT, while larger states lag.

192,600 dwellings were approved in Australia in the year to January 2026. While this represents a strong annual growth rate of 9.2%, on a per capita basis, activity remains subdued at 7 approvals per 1,000 persons, below the 10-year average of 8. The data indicates that approvals have recovered from a recent trough, with the current momentum driven by a significant rebound in the higher-density market which has struggled in recent years.
An analysis of the pipeline reveals a clear bottleneck. While approvals (192,600) and commencements (184,600) are experiencing above-average annual growth, completions (173,900) have contracted by 1.9%. This disconnect highlights a critical blockage in converting projects into finished dwellings, likely due to materials and labour constraints. The recovery in approvals is being led by the attached dwellings segment, where growth (+22.1%) is running far ahead of its 10-year average (-3.0%).
State-level data shows a significant divergence in momentum. Development activity is strongest in the ACT (+117.2% YoY growth) and the Northern Territory (+38.1%), while activity in the larger states of New South Wales (+8.7%) and Victoria (-2.6%) is far more subdued. Commercial development also remains weak, with total commercial approval values growing just 0.8% annually, well below the 10-year average growth of 7.6%, dragged down by a 6.7% contraction in industrial projects.
Development Approvals - Attached
+22.1% YoY
vs 10-year average growth of -3.0%
Rising
Dwelling Completions (Annual)
-1.9% YoY
vs +11.1% growth in commencements
Falling
Industrial Building Value
-6.7% YoY
vs 10-year average growth of +12.2%
Falling
Approvals per 1,000 Persons
7
Below the 10-year average of 8
Stable

Housing Market

Regional price growth outpaces capitals, but affordability pressures persist.
Australian capital city median house prices reached $1.04m in Sep-25, rising 6.1% annually. Growth is strongest in NT (+19.9%) and weakest in VIC (+0.4%). While capital city affordability has slightly improved relative to the decade average, regional markets are seeing stronger price acceleration, with values up 9.3% year-on-year, well ahead of their long-term trend.

The median house price in Australian capital cities reached $1,040,000 in September 2025, reflecting a 6.1% increase over the year. While this represents solid growth, it is a moderation from the double-digit pace seen in some states. In contrast, regional house prices have accelerated, reaching $703,000, up a robust 9.3% over the year. This growth in regional areas is significantly outpacing the 10-year average of 6.5%, indicating a sustained shift in demand.
Affordability remains a critical issue, particularly for attached dwellings. Capital city attached dwellings are priced at 6.41 times annual household income. While this is surprisingly 15.4% below the 10-year average of 7.57x, it still sits in the 'moderately unaffordable' category. Affordability is slightly better in regional areas, where the attached price-to-income multiple is 5.88x. This metric highlights the ongoing strain on household budgets when entering the property market.
Transaction volumes for attached dwellings in capital cities fell by 3.9% over the year, a significant contrast to the 10-year average annual growth of 1.7%, suggesting buyer sentiment may be softening in this segment. Across the states, price growth is strongest in the Northern Territory (+19.9%) and weakest in Victoria (+0.4%). In terms of raw values, New South Wales remains the most expensive state for housing, with a median capital house price of $1.46m.
Attached Price to Income Multiple - Capitals
6.41x
15.4% below the 10-year average of 7.57x
Falling
House Price Growth (Regional)
+9.3% YoY
Significantly above 10-year average of +6.5%
Rising
House Price Growth (Capitals - NT)
+19.9% YoY
Fastest growing state/territory
Rising
Attached Sales Volume (Capitals)
-3.9% YoY
Well below 10-year average growth of +1.7%
Falling

Housing Finance

Investor lending surges, driving housing finance growth to multi-year highs.
Housing finance commitments totalled $140.2bn in Dec-25, with annual growth of 14.3% far exceeding the 10-year average of 3.2%. The standout was a 31.9% boom in investor lending, more than double its long-term average. Growth was strongest in Tasmania (+21.7%) and NSW (+19.3%), pointing to a broad-based recovery in housing credit as market activity accelerates.

Housing finance commitments totalled $140.2bn in December 2025, up a strong 14.3% compared to a year ago. Lending growth is now running at more than four times the 10-year average of 3.2%, reflecting a sharp acceleration in credit uptake. Following a period of moderation, housing finance has recovered strongly from levels seen earlier in the year, a trend consistent with a more stable interest rate environment and improving housing market sentiment.
The lending rebound was propelled by investors. Owner-occupier lending accounted for $94.8bn (67.6% of total), while investor lending surged to $45.4bn (32.4% of total). Annually, owner-occupier lending grew 7.5%, well above its 10-year average of 1.2%. However, investor lending expanded by a remarkable 31.9%, more than double its decade average of 12.8%. Investors now account for 32.4% of new lending, a share that is trending firmly above the long-term average and signals renewed speculative activity in the market.
The recovery in housing finance is widespread, with all states recording positive annual growth. Tasmania (+21.7%), New South Wales (+19.3%), and Victoria (+15.5%) led the nation with the strongest increases in lending commitments. In contrast, growth was slowest in South Australia and Western Australia. The sharp increase in investor activity is particularly evident in the larger eastern states, aligning with areas experiencing robust housing price growth. This synchronised upswing suggests credit conditions are supporting a national rise in property values.
Housing Finance (Investor)
+31.9% YoY
vs 10yr avg +12.8%
Rising
Housing Finance (Total)
+14.3% YoY
vs 10yr avg +3.2%
Rising
Investor Share of Lending
32.4%
Above the long-term average
Rising
Lending Growth (TAS)
+21.7% YoY
Fastest growing state
Rising

Monetary & Financial Conditions

RBA lifts cash rate to 3.85% with a clear tightening bias amid inflation fears.
The RBA cash rate was increased to 3.85% in February 2026, signaling a continued hawkish stance to curb inflation. This is flowing through to borrowers via variable mortgage rates of 6.05%, which are nearly 1.00 percentage point above the 10-year average. Bond markets are pricing in further hikes, with the 2-year yield at 4.08%, significantly above its long-term average, pointing to sustained monetary pressure.

The RBA cash rate stands at 3.85% as at February 2026. In response to persistent inflation, the RBA raised the rate by 25 basis points in the February meeting. This move continues the current tightening cycle, with official communication indicating that further increases may be necessary to bring inflation back to the target range. Markets have interpreted this as a distinctly hawkish policy bias.
The transmission of monetary policy is evident in borrowing costs. Standard variable mortgage rates for owner-occupiers reached 6.05% in January 2026, creating a 2.20 percentage point spread over the current cash rate. These rates are now running significantly above the 10-year average of 5.06%. Similarly, small business loan rates are elevated at 8.25%, reflecting tighter financial conditions across the economy.
The bond market is positioned for a period of higher interest rates. The 2-year government bond yield is elevated at 4.08%, while the 10-year yield is 4.75%. This establishes a positive yield curve with a spread of 67 basis points. While a positive curve typically signals expectations of economic growth, the high short-term yield indicates that financial markets are anticipating further rate hikes from the RBA in the near term.
Two Year Bond Yield
4.08%
94.1% above 10yr avg
Rising
Ten Year Bond Yield
4.75%
71.2% above 10yr avg
Rising
3-Year Fixed Mortgage
5.99%
32.4% above 10yr avg
Rising
Variable Mortgage Rate
6.05%
19.6% above 10yr avg
Rising

FX Rates & Commodities

AUD holds firm above US70c, but diverging commodity prices signal potential headwinds.
The Australian dollar is trading at US$0.7100 as of February 2026, up 14.5% over the year and 7.8% above its 10-year average. The currency shows significant strength against the Japanese Yen (+14.2% vs avg). However, a sharp decline in mining commodity price growth contrasts with rural strength, clouding the outlook.

The Australian dollar is trading at US$0.7100 as at February 2026, with the trade-weighted index standing at 65.50. The AUD is 7.8% above its 10-year average of US$0.6600, and the TWI is 6.8% above its 10-year average of 61.33. The currency is up 14.5% over the year, reflecting a strong appreciation over the last 12 months, though market sentiment suggests it is now stabilising at these higher levels.
Against its major currency crosses, the AUD has shown the most significant strength against the Japanese Yen, trading at ¥110.87, a full 14.2% above its 10-year average. It is also trading firmly against the US dollar at $0.7100 (7.8% above average) and the Euro at €0.6000. This broad strength enhances the purchasing power for imports but may create competitiveness challenges for some export sectors.
Australia's commodity price index growth has recently fallen to -2.9%, a sharp reversal from the 10-year average growth of +9.0%. This masks a significant divergence between sectors: mining commodity price growth is down -4.2% (versus a +9.8% average), while rural commodity prices remain strong with +7.9% growth (versus a +4.1% average). The fall in mining prices is dampening the terms of trade, but the AUD remains supported by other factors for now.
AUD / JPY
110.87
+14.2% vs 10yr avg
Rising
Commodity Price Index - Mining AUD (Growth)
-4.2%
vs 10yr avg of +9.8%
Falling
AUD/USD
0.7100
+7.8% vs 10yr avg
Rising
Commodity Price Index - Rural AUD (Growth)
+7.9%
vs 10yr avg of +4.1%
Rising

Employment

Unemployment remains low at 4.1%, but job growth is moderating.
Australia's unemployment rate stood at 4.1% in January 2026, remaining near historic lows but showing signs of moderating from its cyclical trough. Annual employment growth of 1.0% is below the long-term average, with gains concentrated in full-time roles. South Australia leads state job growth (+2.9%), while Western Australia retains the lowest unemployment rate (3.4%). The labour market remains resilient but is gradually cooling in line with the broader economic slowdown.

The unemployment rate in Australia stands at 4.1% as at January 2026. This is well below the 10-year average of 5.2%, indicating continued tightness in the labour market. However, the rate has edged up from a cyclical trough of 3.5% recorded in late 2024, suggesting the market is past its peak and has started to normalise. The current dynamic is best described as 'low but gently rising', a critical signal of a turning point after a period of exceptional strength.
There were 14.7 million persons employed, an increase of 1.0% over the year. This growth is below the 10-year average of 1.9%, reflecting a moderation in labour demand. The composition of job creation remains positive, as full-time employment grew by a solid 1.2% while part-time employment rose by a more modest 0.6%. This indicates that the bulk of new jobs created over the past year have been higher-quality, full-time positions, a sign of underlying business confidence.
Among the states, Western Australia (3.4%) currently has the nation's lowest unemployment rate, benefiting from its resources-driven economy. In terms of momentum, South Australia recorded the strongest employment growth over the past year, with its workforce expanding by a robust 2.9%. This was followed by Victoria and Western Australia (both +1.6%). This highlights a divergence where some states exhibit strong job creation while others maintain low absolute unemployment levels, reflecting varied economic conditions across the country.
Unemployment Rate
4.1%
Below 10-year average of 5.2%
Rising
Annual Employment Growth
+1.0%
Below 10-year average of 1.9%
Falling
Full-Time Employment Growth
+1.2%
Outpacing part-time growth (+0.6%)
Stable
SA Employment Growth
+2.9%
Highest of all states
Rising

Job Advertisements

Job ads cool from elevated levels, signalling a moderation in the labour market.
Job advertisements in Australia totalled 642,900 in January 2026, down 1.5% year-on-year. While levels remain above the 10-year average, this points to a cooling labour market. Professional roles are slowing most sharply against their long-term trend. State performance is diverging, with SA and WA holding up as the ACT and NT post sharp declines, suggesting a moderation in future employment growth.

Job advertisements in Australia totalled 642,900 in January 2026. While job ads remain above the 10-year average, they have fallen from their recent peaks and were down 1.5% compared to a year ago. As a key leading indicator for the labour market, this cooling in advertising activity signals a likely moderation in employment growth in the coming months, suggesting that the exceptionally tight labour market conditions are easing.
The composition of job ads shows diverging trends. Professional job advertisements stood at 183,200, while Industrial ads were 130,000. Both categories remain above their respective 10-year averages. However, the standout is the sharp deceleration in professional roles, where annual growth of -2.5% is significantly below its 10-year average pace of +4.1%. In contrast, industrial ads recorded a 0.8% rise, indicating more resilient demand in trade-related sectors for now.
Across the states, the labour market signals are mixed. South Australia (+2.8%) and Western Australia (+0.6%) recorded positive year-on-year growth in job ads, indicating healthier hiring demand. In stark contrast, the sharpest declines from peak levels have been seen in the smaller territories, with the ACT (-17.0%) and the NT (-10.4%) experiencing significant pullbacks. This divergence suggests that while the national labour market is cooling, some state economies are lagging the cycle and facing a more pronounced slowdown in employment.
Job Ads (Total) YoY
-1.5%
Below 10-yr avg growth of +4.0%
Falling
Job Ads (Professional) YoY
-2.5%
6.6pp below 10-yr avg growth
Falling
ACT Job Ads YoY
-17.0%
Slowest growth in the nation
Falling
SA Job Ads YoY
+2.8%
Fastest growth in the nation
Rising

Wages & Earnings

Wages rise 3.4%, but workers' purchasing power falls as inflation bites.
Australia's Wage Price Index rose 3.4% in the year to December 2025, a firm pace that has moderated from recent peaks. Despite this, with inflation at 3.6%, real wages declined by 0.2%. Western Australia saw the strongest wage growth (+4.1%), while the Northern Territory lagged (+2.2%). Average full-time earnings reached $109,517 annually.

Wages grew 3.4% over the year to December 2025, as measured by the Wage Price Index. While this growth rate has moderated from recent peaks, it remains elevated compared to the long-term average. The pace of wage increases is a key focus for the RBA, with signs that the rapid acceleration seen previously has likely peaked, although underlying growth remains firm.
Average full-time weekly earnings reached $2,129 in November 2025, annualising to $109,517. However, this nominal growth was outstripped by annual inflation of 3.6%. As a result, real wages fell by 0.2% over the year, meaning the purchasing power of the average full-time worker slightly declined. This continues the recent trend of cost of living pressures outpacing wage gains for many households.
State-level data reveals significant divergences. Western Australia led the nation with the fastest wage growth over the year (+4.1%) and also reported the highest average weekly earnings ($2,304). In contrast, the Northern Territory recorded the slowest wage growth at just 2.2%. New South Wales saw strong growth in both wages (+3.7%) and earnings (+4.7%), while Queensland (+3.3%) and Victoria (+3.2%) lagged the national rate.
Real Wage Growth (YoY)
-0.2%
Inflation of 3.6% outpaced nominal wage growth of 3.4%
Falling
Wage Price Index (YoY)
+3.4%
Growth has moderated from recent peaks but remains elevated
Stable
Avg. Weekly Earnings (FT)
$2,129
Annualised income of $109,517 as of Nov-25
Rising
State Wage Growth (WA vs NT)
+4.1% vs +2.2%
WA recorded the fastest wage growth, NT the slowest
Stable

Household Consumption

Consumption growth holds up, but spending patterns are shifting to essentials.
Australian household consumption totalled $378.3bn in the December quarter 2025, rising 5.6% annually. This growth is underpinned by essential spending, with discretionary categories lagging. Power consumption growth (+9.6%) significantly outpaced its long-term average, while transport spending growth (+4.5%) was well below trend. Queensland is leading state-level growth in both headline and per capita terms as overall consumption growth moderates.

Household consumption expenditure totalled $378.3bn in the December quarter 2025, up 5.6% over the year. This data, drawn from the comprehensive quarterly National Accounts, indicates that while headline growth remains positive, it is moderating from previous highs. On a per capita basis, which accounts for population growth, consumption stood at $13,700, a softer increase of 4.0% over the year, suggesting that individual spending power is being constrained.
A divergence between essential and discretionary spending is evident. Growth in essential categories like power (+9.6%) was significantly above its 10-year average (+3.0%), highlighting rising utility costs. Conversely, transport spending growth (+4.5%) has fallen dramatically below its long-term average of 26.6%. Discretionary spending on alcohol (+1.4%) also remains subdued compared to its 10-year average of +3.9%, reflecting a pullback in non-essential purchases amid cost-of-living pressures.
Growth was uneven across the states. Queensland led the nation with the strongest growth in total household consumption (+3.4% YoY), followed by Victoria and Western Australia (both +2.5%). In contrast, growth was slowest in Tasmania (+1.7%) and New South Wales (+1.9%). On a per capita basis, which provides a clearer picture of underlying demand, Queensland again saw the fastest growth (+1.6%), while Western Australia (+0.3%) lagged, indicating that rapid population growth is diluting headline spending figures there.
Hhconsumptionpower (YoY Growth)
+9.6%
Significantly above 10yr avg of +3.0%
Rising
Hhconsumptiontransport (YoY Growth)
+4.5%
Dramatically below 10yr avg of +26.6%
Falling
Hhconsumptionpercapita (QLD YoY Growth)
+1.6%
Fastest growing state in per capita terms
Rising
Hhconsumptionalcohol (YoY Growth)
+1.4%
Well below 10yr avg of +3.9%, indicating discretionary pullback
Falling

Household Spending

Spending holds up, but a sharp discretionary pullback signals consumer caution.
Australian household spending totalled $232.0bn in Sep-25, up 5.1% annually. While per capita spending remains historically high, a sharp -18.0% contraction in alcohol spending highlights a pullback in discretionary categories. Spending growth is strongest in WA (+7.9%) and weakest in VIC (+4.0%), reflecting a multi-speed economy.

Household spending in Australia totalled $232.0bn in September 2025, an increase of 5.1% compared to a year ago. On a per capita basis, this equates to $33,424 per person annually. While the pace of growth has moderated, this level of individual spending remains elevated, sitting 21.1% above the ten-year average of $27,602. This suggests that despite emerging headwinds, underlying spending capacity has been resilient compared to historical standards.
A clear divergence has emerged between spending categories. Growth in essential areas like health (+8.1%) and food (+6.4%) remains robust. In contrast, several discretionary sectors show a distinct consumer pullback. Spending on alcohol saw a dramatic -18.0% contraction, a stark reversal from its 10-year average growth of +0.2%. Similarly, spending growth on transport (+4.1%) and clothing (+3.3%) is tracking well below historical averages, signalling households are becoming more selective.
The national figures mask a significant divergence among the states. Growth was strongest in Western Australia (+7.9%), the Northern Territory (+7.1%), and Queensland (+6.6%). Conversely, the largest economies of New South Wales (+5.1%) and Victoria (+4.0%) recorded the slowest growth. This pattern suggests that while nominal spending is still rising, pressures on real household incomes are forcing consumers to cut back on non-essential items, particularly in the southeastern states.
Alcohol Spending Growth
-18.0% YoY
vs 10yr avg of +0.2%
Falling
Household Spending (Per Capita)
$33,424 p.a.
21.1% above 10yr avg
Stable
Miscellaneous Spending Growth
+8.7% YoY
vs 10yr avg of +5.3%
Rising
State Growth Divergence
WA +7.9% vs VIC +4.0%
Mining states outperforming
Stable

Inflation & Cost of Living

Inflation holds steady at 3.8%, stalling the return to the RBA's target.
Australian inflation was 3.8% in the year to January 2026, unchanged from December and still above the RBA's 2-3% target. The disinflationary trend has paused, with significant pressure from housing and food costs. Western Australia leads the states with the highest inflation rate (+4.9%), highlighting uneven price pressures across the nation.

Inflation in Australia was 3.8% in the year to January 2026, remaining stubbornly above the RBA's 2-3% target band. The annual rate was unchanged from December, indicating that the recent disinflationary trend has lost momentum. This persistence suggests underlying inflation is not yet moderating towards the target range. While headline inflation has fallen from its peak, the current stickiness highlights the challenge in restoring price stability, a sentiment echoed by market analysts.
Drilling into the components, services inflation remains a key concern. Housing costs were a primary driver, with prices up 5.4% annually, while food inflation also remained elevated at 4.0%. These categories are experiencing price rises well above their long-term averages. In contrast, the data did not highlight any significant categories providing price relief, with the focus squarely on areas where inflation remains most persistent and is contributing to the cost of living pressures.
There is a notable divergence in inflation across the states. Western Australia recorded the fastest price growth in the nation, with its CPI rising 4.9% over the year, followed by Queensland (+4.3%). At the other end of the scale, Victoria (+3.3%) and the Northern Territory (+3.1%) saw more modest increases. This divergence means households in states with higher inflation are facing a more acute squeeze on their budgets, impacting real purchasing power and local economic conditions.
CPI (All Groups) YoY
+3.8%
Unchanged from Dec-25; remains above the RBA's 2-3% target band
Stable
CPI YoY Growth (WA vs VIC)
+4.9% vs +3.3%
WA has the highest inflation, VIC among the lowest, showing state divergence
Stable
CPI Component YoY
+6.8%
Represents a significant driver of the headline inflation rate
Rising
CPI Level vs 10yr Avg
+8.8%
One of the CPI components is significantly above its 10-year average level
Stable

Equities & Superannuation

Australian equities reach record highs, driven by strong annual capital growth.
The ASX 200 reached 9,198 points in February 2026, with the broader market achieving 12.3% capital growth over the year, well above the 6.8% long-term average. Total market capitalisation climbed to $3.45 trillion amid a positive corporate earnings season. Superannuation performance was also a standout, recording significant gains and contributing to the strong financial landscape.

The ASX 200 closed at 9,198 points as at February 2026, while the broader All Ordinaries reached 9,435 points. This performance represents annual capital growth of 12.3% for the All Ordinaries, a result that is well above the 10-year average annual capital growth of 6.8%. Total market capitalisation was $3.45 trillion. The market pushed to fresh record highs during the month, buoyed by a strong earnings season. These price indices measure capital growth only and exclude dividend returns.
Australia's superannuation sector demonstrated exceptional performance. The primary index of superannuation performance saw asset values reach $375.4 billion, a powerful increase of 39.8% over the year. This growth significantly outperforms the long-term average, highlighting a period of very strong returns for Australia's vast retirement savings pool.
The market's record-breaking performance was set against a backdrop of a positive corporate reporting season, with reports indicating that financials and materials were key drivers of the gains. The strong results have fueled investor confidence. The outlook remains tied to corporate profitability and how well the domestic economy navigates global financial conditions, but current sentiment is clearly optimistic.
All Ordinaries (YoY Growth)
+12.3%
Significantly above the 10-year average of +6.8%
Rising
Super Performance Index
$375.4bn
Well above the average of $268.6bn (+39.8%)
Rising
ASX 200 Index
9,198
Reached new all-time highs as at Feb-26
Rising
ASX Market Cap (YoY)
+10.3%
Total market capitalisation reached $3.45 trillion
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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