Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 21 May 2026 2,788 Indicators

Market Overview

May 2026 Economic Summary

Australia's two-speed economy battles a 4.6% inflation shock and an RBA on edge

Australia's $2.75 trillion economy is expanding, but a nasty 4.6% inflation shock has tested market resolve and kept the RBA firmly on the offensive. While mining and finance drive top-line GDP growth of 2.6%, a per capita squeeze and surging essential costs reveal an exhausted consumer pivoting to defense. With unemployment edging up to 4.3% and regional property markets booming, the nation is increasingly operating at two very distinct speeds.

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Market Snapshot As at 21 May 2026
4.35% RBA Cash Rate
8,858 All Ordinaries
8,636 S&P/ASX 200
5.07% 10yr Bond
USA
0.7114 AUD/USD
China
4.8317 AUD/CNY
UK
0.5292 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-Apr No 641,127 (+0.2%) 639,926 (-12.7%) 733,273 (-14.0%) 852,493 (+0.3%) 850,294 (+29.2%) 658,362
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.

VIC

Suburban Rail Loop North - Broadmeadows Station

A new underground transport super hub at Broadmeadows, part of the Suburban Rail Loop (SRL) North segment. The station will serve as a major northern interchange, connecting the Cr

$34.7B 2053 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
VIC

Sunshine Precinct

Long-term Victorian Government urban renewal and transport precinct program centred on Sunshine Station, Sunshine CBD and Albion Quarter. The precinct is being positioned as a majo

$4.2B 2055 Construction
QLD

Brisbane 2032 Olympics Horizon Centre

The $1 billion Horizon Centre is a signature Public Private Partnership (PPP) proposal by Walker Corporation, Built, and Woods Bagot. Designed as a legacy project for the Brisbane

$1.0B 2032 Proposed
WA

East Wanneroo District Structure Plan

A transformative 50-year vision for 8,300 hectares across 28 precincts in Perth's northern corridor. The plan accommodates 150,000 residents and 50,000 dwellings, including 20,000

2075 Construction
QLD

HyNQ North Queensland Clean Energy Project

HyNQ is a large-scale integrated renewable energy project within the Abbot Point State Development Area, approximately 25km north of Bowen. The project will develop a green hydroge

$7.0B 2030 Planning
NSW

Sovereign Hills Master Planned Community

A $1.5 billion premier master-planned community by Lewis Land Group in the Thrumster urban release area, 350 hectares in size with capacity for up to 2,000 residential lots and a g

$1.5B 2035 Construction
NSW

Sydney Metro Eastern Suburbs Extension

A long-term strategic extension of the Sydney Metro network envisioned as a continuation of Metro West eastward from Hunter Street. Identified in the South East Sydney Transport St

$15.0B 2041 Proposed
WA

Alkimos Central

A 200 ha transit-focused masterplanned city centre in the Alkimos-Eglinton corridor, planned as the largest concentration of employment, business and economic activity between Joon

$8.0B 2056 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. As of May 2026, The Palms Shopping Village is in

$3.0B 2046 Construction
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
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
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
VIC

Frankston Revitalisation Project

A multi-decade urban renewal initiative guided by the Frankston Metropolitan Activity Centre (FMAC) Structure Plan, approved in April 2025. Key active components include the Harbou

$650M 2045 Construction
QLD

Santos GLNG Project

A major coal seam gas (CSG) to liquefied natural gas (LNG) project operated by Santos on behalf of the GLNG joint venture (Santos 30%, PETRONAS 27.5%, TotalEnergies 27.5%, KOGAS 15

$24.0B 2045 Construction
VIC

Clyde Creek Precinct

A significant greenfield development in Melbourne's south-east growth corridor transforming into a residential and employment hub. By May 2026, the precinct has reached critical mi

$3.5B 2040 Construction

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 as national housing finance reaches $112.4bn
Housing finance commitments totalled $112.4bn in March 2026, rising 8.7% YoY. This growth is 5.3pp above the 10-year average, propelled by a 25.0% surge in investor lending. While owner-occupier growth is more modest at 2.3%, the market is recovering strongly from previous lows. The ACT leads national growth (+14.6%), while the NT faces a -6.8% decline in total commitments.

Housing finance commitments totalled $112.4bn in March 2026, up 8.7% compared to a year ago. Lending volumes are 5.3% above the 10-year average growth rate of 3.4%, indicating a robust recovery in credit demand. Housing finance has recovered from cyclical lows seen in 2024, supported by high levels of refinancing activity as households navigate the tail end of the 'mortgage cliff'. Despite elevated interest rates, the total lending trajectory remains upward, although the pace of expansion varies significantly between different loan segments.
Owner-occupier lending reached $75.8bn (67.4% of total), while investor lending rose to $36.7bn (32.7% of total). Growth rates diverged sharply; owner-occupier lending grew 2.3% while investor lending surged 25.0%, significantly exceeding its 10-year average of 12.6%. Investors now account for 32.7% of new lending, above historical averages. This indicates that investment yields and capital growth expectations are currently the primary drivers of credit expansion as owner-occupiers face continued affordability constraints and high debt-to-income hurdles.
Lending growth shows strong geographic divergence, with ACT (+14.6%), TAS (+11.6%), and NSW (+11.5%) recording the fastest total growth. In contrast, WA (+2.8%) and NT (-6.8%) recorded the weakest performances. Owner-occupier demand was strongest in ACT (+13.7%) but contracted in NT (-11.3%) and WA (-5.7%). This variance reflects local housing price trends and the impact of interest rates on borrowing capacity. High investor participation in the eastern states continues to underpin credit growth despite broader economic headwinds and monitoring of arrears.
Housing Finance (Investor)
$36.7bn
25.0% YoY growth vs 12.6% 10yr avg
Rising
Housing Finance (Total)
$112.4bn
8.7% YoY growth vs 3.4% 10yr avg
Rising
ACT Total Lending
+14.6%
Fastest growing state market
Rising
Investor Share
32.7%
Significant increase in market composition
Rising

Monetary & Financial Conditions

RBA returns to 4.35% peak with 25bp May hike as bond yields signal persistence.
The RBA cash rate stands at 4.35% as of May 2026, marking a 13.0% year-on-year increase and remaining above the 10-year average of 4.05%. This follows a cumulative 75bp tightening cycle since January 2026, with the most recent 25bp hike in May highlighting persistent inflation concerns. Bond markets reflect this restrictive setting through elevated yields, while mortgage holders face rates significantly above long-term norms.

The RBA cash rate stands at 4.35% as at May 2026. This is above the 10-year average of 4.05%. The RBA raised rates by 25 basis points in May, the 3rd move in the current tightening cycle following previous hikes in February and April. This represents 75bp of tightening since January 2026, following 400bp of total tightening since May 2022. The Board's decision reflects a need to remain vigilant on services inflation, as noted in recent meeting minutes, even as alternative economist views suggest policy may be becoming a drag on productivity.
Transmission to borrowers is evident in mortgage rates, with the variable owner-occupier rate reaching 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. Small business loans are even more elevated at 8.75%, well above the 6.86% 10-year average. Overall, mortgage holders face rates 1.45% higher than the 10-year average of 5.10%, significantly impacting household disposable income and tempering discretionary consumption across the national economy.
Bond market signals indicate that the 'higher for longer' narrative is becoming embedded in yields. The 2-year bond yield stands at 4.66%, while the 10-year yield reached 4.97% by April 2026. The resulting 31bp positive yield curve suggests markets expect moderate growth and potentially further tightening rather than imminent recessionary risks. Current weekly market snapshots show the 10-year yield further ascending to 5.07%, confirming that financial conditions remain restrictive as the RBA seeks to anchor inflation expectations near the 2-3% target band.
Australian 2-Year Bond Yield
4.66%
114.7% above 10yr avg
Rising
Australian 10-Year Bond Yield
4.97%
75.3% above 10yr avg
Rising
3-Year Fixed Mortgage Rate
6.73%
46.8% above 10yr avg
Rising
RBA Cash Rate
4.35%
7.4% above 10yr avg
Rising

FX Rates & Commodities

AUD strength peaks as rural commodity gains offset moderating mining sector export growth.
The Australian dollar remains robust, trading at US$0.7114 in May 2026, supported by a 10.9% year-on-year appreciation. The Trade Weighted Index of 66.30 is 7.8% above its 10-year average, reflecting broad strength against major crosses, particularly the Japanese yen. While rural commodity growth of 10.8% is 5.0 percentage points above average, moderating mining sector growth indicates a peaking trajectory.

The Australian dollar is trading at US$0.7114 as at 21 May 2026. The trade-weighted index stands at 66.30 as of April 2026. The AUD is 7.7% above its 10-year average of US$0.66, while the TWI is 7.8% above its 10-year average of 61.51. On a year-on-year basis, the currency has appreciated 10.9% against the US dollar and 10.7% on a trade-weighted basis. This trajectory reflects a period of significant strength peaking relative to historical norms, primarily driven by interest rate differentials and robust rural commodity performance over the past twelve months.
Bilateral exchange rates show broad appreciation. The AUD/USD rate of 0.7100 is primary, but the standout is AUD/JPY at 114.28, sitting 16.5% above its 10-year average of 98.07. In European and UK trade, the AUD/EUR sits at 0.6100 (up 8.9% YoY) and the AUD/GBP at 0.5292. Against the Chinese yuan, critical for commodities, the AUD is at 4.8317. This strengthening trend improves import purchasing power but poses challenges for export competitiveness. The AUD is 7.7% above its 10-year USD average, signaling a strong but potentially peaking valuation against major partners.
Commodity prices provide a mixed outlook for the AUD. The Commodity Price Index (AUD) grew 4.6% in the year to April 2026, 4.8 percentage points below the 10-year average of 9.4%. Rural commodities are the standout, with growth of 10.8% tracking 5.0 percentage points above the long-term average. Conversely, mining commodity growth has moderated to 3.7%, well below the 10-year average of 9.9%. While terms of trade are supported by rural exports and gold at $6,387/oz, the decelerating mining sector growth suggests the AUD trajectory is peaking as global demand for core exports softens.
AUD / JPY
114.28
16.5% above 10yr average
Rising
Rural Commodities (AUD)
+10.8% growth
5.0pp above 10yr average
Rising
Trade Weighted Index
66.30
7.8% above 10yr average
Rising
Mining Commodities (AUD)
+3.7% growth
6.2pp below 10yr average
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

Job ads plateau above long-term averages as industrial demand leads the market
Australian job advertisements totalled 641,127 in April 2026, remaining 2.5% above the 10-year average despite a 24.8% decline from the April 2023 peak. Annual growth has moderated to just 0.2%, significantly below the 6.1% historical average. While industrial roles show resilience, the broader cooling signals a shift toward a more balanced labour market, with lead times suggesting future employment growth will remain subdued.

Job advertisements in Australia totalled 641,127 in April 2026. This is 2.5% above the 10-year average of 625,521. Job ads remain 2.5% above the 10-year average, despite falling 24.8% from the peak of 852,493 in April 2023. Year-on-year growth has slowed to 0.2% compared to a year ago, a sharp deceleration from historical trends. As a leading indicator, this plateauing of hiring intent suggests that while the labour market remains historically tight, the period of rapid expansion has concluded, signalling more modest employment gains in the months ahead.
Compositional data reveals varied demand across sectors. Professional ads totalled 185,932, remaining 3.3% above its 10-year average, while Sales ads reached 31,731, or 3.1% above historical norms. The clear standout is Industrial and Trades ads, which at 131,299 remain 10.6% above the 10-year average. This persistent strength in industrial demand, which grew 3.3% year-on-year, contrasts with the broader cooling and suggests that skills shortages remain acute in technical and trade-exposed sectors even as professional services demand moderates.
State performance highlights a widening divergence in hiring activity. South Australia (+5.4%) and Western Australia (+3.7%) recorded the fastest annual growth, with Western Australia benefiting from sustained resource-sector demand. Conversely, Victoria (-1.3%), the Northern Territory (-3.5%), and the ACT (-11.4%) saw declines in job volumes, with the sharp contraction in the ACT reflecting broader public sector caution. These trends suggest that while the national market is cooling, resource-exposed and smaller states are leading the current cycle, providing a buffer to national employment levels.
Industrial Job Ads
131,299
10.6% above 10yr average
Stable
Total Job Ads
641,127
24.8% below April 2023 peak
Falling
ACT Job Ads Growth
-11.4%
Slowest growth nationally
Falling
SA Job Ads Growth
+5.4%
Fastest growth nationally
Rising

Wages & Earnings

Real wage gains return as growth remains above long-term averages
Wages grew 3.2% annually to March 2026, with the Wage Price Index of 160.3 sitting 15.3% above its 10-year average level. Full-time earnings reached $2,129 per week (+4.0% YoY), delivering a 1.1% gain in real purchasing power as inflation cooled to 2.1%. ACT and WA led growth rankings, while NSW saw the fastest earnings increase at 4.7%.

Wages grew 3.2% over the year to March 2026, as measured by the Wage Price Index (WPI). This is above the 10-year average wage growth of 2.6%, though the pace has moderated from the 4.1% recorded a year ago. The current index level of 160.3 is significantly elevated, standing 15.3% above the long-term average level of 139.1. While the labor market remains resilient, the moderation in growth suggests that wage pressures have likely peaked, transitioning from a period of rapid acceleration to a more sustainable, albeit still robust, trajectory.
Average weekly full-time earnings reached $2,129 per week in November 2025, annualising to $109,517 for full-time workers. With headline inflation at 2.1%, real wage growth was positive at 1.1% over the year. This represents a gain in purchasing power of 1.1% for workers, outperforming the 10-year average real wage growth of 0.2%. This marks a critical turning point as pay increases finally outpace the cost of living after several years of real income erosion, providing households with genuine income growth as price pressures subside faster than nominal pay increases.
State comparisons show the ACT (+3.7%) and Western Australia (+3.6%) leading WPI growth, while the Northern Territory (+2.3%) and South Australia (+3.1%) saw more modest gains. Western Australia maintains the highest earnings level at $2,304 per week, though its 2.6% earnings growth was the slowest nationally. In contrast, NSW recorded the fastest earnings growth at 4.7%, pushing its weekly pay higher relative to the national average. Tasmania remains the lowest-earning state at $1,890 per week, though its WPI level of 164.1 is currently the highest in the federation.
Wage Price Index (Mar-26)
160.3 (+3.2% YoY)
15.3% above 10-yr average level
Stable
Weekly Earnings (FT)
$2,129 (+4.0% YoY)
NSW leading growth at 4.7%
Rising
Real Wage Growth
+1.1%
Outperforming 10-yr average of 0.2%
Rising
Annual Earnings (FT)
$109,517
WA highest level at $2,304/week
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

Australian equities and superannuation assets surge above long-term averages.
The ASX 200 reached 8,665 points as at April 2026, recording 6.6% annual capital growth, which exceeds the 10-year average of 5.6%. Total market capitalisation rose to $3.25 trillion, while superannuation assets reached $4.47 trillion by September 2025. This 9.4% annual growth in super assets outpaces the decade average, reflecting a robust national trajectory despite heightened volatility.

The ASX 200 closed at 8,665 points as at April 2026. The All Ordinaries reached 8,887 points, reflecting 6.6% capital growth over the year. This compares to average annual capital growth of 5.6% over the past decade. Total market capitalisation of $3.25 trillion was recorded, representing an 8.6% annual increase. These price indices measure capital growth only and exclude dividend distributions. While the market has recently consolidated—with the ASX 200 at 8,636 as of May 21, 2026—the April close represents a robust trajectory trading near all-time high levels.
Superannuation assets total $4.47 trillion as at September 2025, up 9.4% over the year. This growth rate exceeds the 10-year average of 8.6%, underscoring the resilience of Australia's retirement savings pool. The Super Performance Index reached $375.4 billion, standing 39.8% above its long-term average. These assets form a critical component of national wealth, with fund returns for the 2025/26 period supported by strong international tech exposure and a domestic banking sector that has remained resilient despite the tightening monetary environment.
Market sentiment remains cautiously optimistic as financials lead earnings-driven gains, offsetting headwinds in the mining sector from commodity price volatility. The record level of superannuation assets provides a significant structural tailwind for the economy, though the volatility index has ticked higher as investors weigh global trade risks and the timing of the RBA easing cycle. Performance has outpaced the long-term average capital growth trend, suggesting that equity markets have largely priced in a manageable economic transition as retirement savings continue to expand.
ASX 200 (Apr-26)
8,665
6.6% growth vs 5.6% 10yr avg
Rising
Super Assets (Total)
$4.47 trillion
9.4% growth vs 8.6% 10yr avg
Rising
Market Capitalisation
$3.25 trillion
8.6% growth vs 7.9% 10yr avg
Rising
Super Performance Index
$375.4bn
39.8% above 10yr average
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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