Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 26 Mar 2026 2,788 Indicators

Market Overview

April 2026 Economic Summary

RBA Hike Rattles Markets as AUD Tumbles Below $0.70

The Reserve Bank's decision to raise the cash rate to 4.10% sent shockwaves through markets, catalysing a 2.3% weekly drop in the AUD to US$0.6946. The RBA's hawkish pivot comes as it declares 'inflation remains too high,' forcing its hand despite signs the economy is already losing steam. While headline growth is firm, rapid population gains are masking a per-capita slowdown, creating a complex challenge for policymakers and households navigating the turbulence.

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Market Snapshot As at 26 Mar 2026
4.10% RBA Cash Rate
8,745 All Ordinaries
8,534 S&P/ASX 200
4.89% 10yr Bond
USA
0.6946 AUD/USD
China
4.7940 AUD/CNY
UK
0.5199 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-Feb Index 101.31 (+3.7%) 97.67 (+2.4%) 95.38 (+3.8%) 91.92 (+7.3%) 85.68 (+4.6%) 81.94
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-Feb Persons ('000) 14,749 (+1.8%) 14,484 (+1.7%) 14,247 (+3.0%) 13,833 (+3.5%) 13,358 (+3.6%) 12,890
Unemployment 2026-Feb % 4.28 (+23bps) 4.05 (+32bps) 3.73 (+13bps) 3.60 (-42bps) 4.02 (-182bps) 5.84
Job Ads 2026-Feb No 629,908 (-1.6%) 640,134 (-15.6%) 758,761 (-9.8%) 840,853 (+3.9%) 809,521 (+38.4%) 585,074
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-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

Cairns Smart Green Economy Initiative

A multi-stage strategic initiative by Cairns Regional Council to transform the region into a leader in the Smart Green Economy. Key focus areas include net-zero energy systems, cir

$540M 2030 Construction
NSW

Green Square Town Centre

Australia's largest urban renewal project transforming 278 hectares into a sustainable high-density precinct. By 2030, it will support 61,000 residents and 21,000 jobs. Recent mile

$13.0B 2030 Construction
NSW

Tech Central Innovation Precinct

A 6-square-kilometre innovation district from Haymarket to Camperdown, designed as Australia's premier deep-tech hub. An August 2025 rezoning approval enables 950 new homes and is

$11.0B 2036 Construction
VIC

Northern and Western Geelong Growth Areas

The largest greenfield urban growth project in regional Victoria, spanning approximately 5,367 hectares across the Northern (Lovely Banks) and Western (Batesford/Fyansford) corrido

$1.5B 2047 Planning
QLD

Moreton Bay Central (The Mill) - Knowledge and Innovation Precinct

Moreton Bay Central (formerly The Mill at Moreton Bay) is a 460-hectare Priority Development Area (PDA) transforming the former Petrie paper mill site into a world-class innovation

$1.2B 2035 Construction
VIC

Sunshine Priority Precinct Vision 2050

The Sunshine Priority Precinct Vision 2050 is a major urban renewal strategy to establish Sunshine as the capital of Melbournes west. It leverages over $20 billion in total infrast

$14.0B 2050 Planning
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

$1.5B 2035 Planning
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

Australian Renewable Energy Hub (AREH)

The Australian Renewable Energy Hub (AREH) is a giga-scale renewable energy project in the East Pilbara region of Western Australia. Spanning over 6,500 km2, the project intends to

$55.0B 2038 Planning
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

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
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
NSW

Sydney Metro West

A $27-$29 billion, 24-kilometre underground metro railway doubling rail capacity between Greater Parramatta/Westmead and the Sydney CBD. The project features 9 fully accessible, dr

$28.0B 2032 Construction
NSW

Woollahra Station Activation (Eastern Suburbs Railway)

Activation of the unfinished 'ghost' station at Woollahra on the T4 Eastern Suburbs Line. The project involves completing the station platforms and facilities first started in the

$450M 2029 Planning
VIC

Torquay North Residential Development Area

A major residential growth corridor in Torquay North encompassing established and active estates like The Dunes, Quay 2, and Stretton. The precinct is currently integrating the Wur

$750M 2032 Construction
QLD

Arrow Energy Surat Gas Project

A 27-year coal seam gas to LNG project in the Surat Basin involving the development of up to 2,500 gas wells and critical infrastructure including field compression stations and pi

$10.0B 2037 Construction

GDP & Economic Output

Economic growth holds above trend, but rapid population gains dilute per-person prosperity.
Australia's annual GDP reached $2.75t to December 2025, with year-on-year growth of 2.6% holding above the long-term trend. However, this headline strength masks a weaker outcome per person, with per capita GDP growing just 1.0% as population growth dilutes the gains. Growth was driven by Mining and Financial Services, but a slowdown is forecast.

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 long-term trend, driven by key sectors outperforming their historical averages. While growth has been resilient, commentary suggests a moderation from previous highs, with forecasts pointing towards a slowdown as tighter policy impacts the economy.
On a per-person basis, the story is more subdued. While headline GDP grew 2.6%, per capita GDP grew just 1.0% over the year, as strong population growth diluted the economic gains for each Australian. This sluggish growth in individual prosperity highlights the challenge of improving living standards for a rapidly expanding population.
Industry performance was mixed. Growth was spearheaded by strong output in Mining (+3.7%) and Financial Services (+4.8%), both expanding at a pace well above their 10-year averages. These gains helped offset significant weakness in the Professional Services sector, which contracted 0.4% against a long-term average growth of 4.0%, and softer-than-usual growth in Health (+2.5%).
Annual GDP Growth (YoY)
+2.6%
Above the long-term trend
Falling
GDP per Capita Growth (YoY)
+1.0%
Significantly trailing headline growth
Falling
Mining Industry Growth
+3.7%
+2.4pp vs 10yr avg of +1.3%
Rising
Professional Services Growth
-0.4%
-4.4pp vs 10yr avg of +4.0%
Falling

Population & Migration

Population growth cools as record migration surge moderates.
Australia's population hit 27.7 million at Sep-25, up 1.6% annually. Growth is now moderating from recent highs, driven by a sharp slowdown in overseas migration (-14.9% YoY), which remains the main growth driver but has clearly peaked. Western Australia (+2.2%) leads state growth, while Tasmania (+0.3%) lags.

Australia's population reached 27.7 million as at September 2025, an increase of 425,600 persons (1.6%) over the year. This robust growth, however, represents a clear deceleration from the post-pandemic peak, suggesting a normalisation is underway. The slowdown follows a period of record intake, with population growth now easing from the multi-decade highs seen over the previous year.
Population change was comprised of a 311,000 person gain from net overseas migration and 114,600 from natural increase. While migration remains the primary growth engine, it is the standout driver for its sharp reversal. Its annual growth of -14.9% is a significant turnaround from the 10-year average growth of +52.9%. In contrast, natural increase (+8.9%) is now tracking well above its long-term average decline (-2.5%).
Growth is not uniform across the nation. Western Australia (+2.2%), Victoria (+1.7%), and Queensland (+1.7%) recorded the fastest growth rates, all exceeding the national average. New South Wales (+1.2%) and South Australia (+1.1%) saw more moderate gains, while Tasmania (+0.3%) lagged significantly. These trends are influenced by interstate movements, with Queensland and WA being net beneficiaries, drawing residents from NSW and Victoria.
Total Population
27.7 million
+1.6% YoY (Sep-25)
Rising
Overseas Migration (YoY Growth)
-14.9%
vs 10yr avg of +52.9%
Falling
Natural Increase (YoY Growth)
+8.9%
vs 10yr avg of -2.5%
Rising
Fastest Pop. Growth (State)
WA (+2.2%)
Leading all states in YoY growth
Stable

Development Activity

Development pipeline under pressure as completions lag strong approvals.
Dwelling approvals reached 192,600 in the year to Jan-26, up 9.2% annually. However, a significant bottleneck is emerging, with annual completions falling 1.9% to 173,900, struggling to keep pace. While attached dwelling approvals surged, the pipeline is hampered by rising costs and capacity constraints. Growth is led by ACT (+117.2%) and NT (+38.1%), while larger states lag.

192,600 dwellings were approved in Australia in the year to January 2026. This is 12.5% below the 10-year average. On a per capita basis, this represents 7.0 approvals per 1,000 persons, below the 10-year average of 8.0. Despite recent monthly volatility noted in market commentary, the annual trend shows approvals have recovered from prior lows, with strong year-on-year growth of 9.2% indicating a positive turn in the forward pipeline.
The pipeline shows a clear conversion issue. While approvals (192.6k) and commencements (184.6k) are recovering, completions (173.9k) are falling, down 1.9% on the year and running well below their 10-year average. This points to a critical bottleneck in the final stage of construction, likely linked to costs and labour shortages delaying project delivery. The recovery in approvals has been driven by a 22.1% surge in the volatile attached dwellings segment.
The development recovery is uneven. Growth in approvals is strongest in the ACT (+117.2%) and NT (+38.1%), while larger states like NSW (+8.7%) and Victoria (-2.6%) show more modest momentum. This highlights differing market conditions across the country. Meanwhile, the commercial sector is sluggish, with non-residential building approvals growing just 0.8% over the year, well below the 10-year average growth of 7.6%, suggesting weaker business investment.
Dev Approvals - Attached (YoY)
+22.1%
vs 10yr avg of -3.0%
Rising
Dwelling Completions (YoY)
-1.9%
Lags approvals (+9.2%), indicating a bottleneck
Falling
Devbuildvalueind (YoY)
-6.7%
vs 10yr avg of +12.2%
Falling
Dwelling Commencements (YoY)
+11.1%
vs 10yr avg of -0.8%
Rising

Housing Market

National house price growth remains strong, but affordability is strained and momentum is slowing.
The median capital city house price reached $1.09m in Dec-25, up 8.4% annually. While growth is strong, affordability remains a key issue with regional prices 6.6% above the 10-year average multiple. Growth is strongest in NT (+27.0%) and weakest in Victoria (+2.9%), with signs of a broader slowdown emerging in major east-coast markets.

The median house price in Australia's capital cities reached $1,090,000 in Dec-25, up 8.4% over the year. While annual growth remains robust, recent sentiment suggests price momentum has moderated from its peak. In comparison, regional house prices reached $735,000, up a stronger 11.2% over the year. This regional growth is significantly above the 10-year average of 6.9%.
Affordability is a critical issue, with regional houses priced at 6.64x annual household income, which is 6.6% above the 10-year average of 6.23x. At this level, housing is 'seriously unaffordable'. In capital cities, attached dwellings offer slightly improved affordability at 6.69x income, which is notably below the city's 10-year average multiple of 7.63x, suggesting some relative value in the apartment market compared to historical pricing.
Transaction volumes for attached dwellings in capital cities fell by 0.2% over the year, underperforming the 10-year average annual growth of +2.5% and pointing to softer buyer activity. The national housing market is moving at multiple speeds. Price growth is strongest in the Northern Territory (+27.0%) and weakest in Victoria (+2.9%). Similarly, Western Australia (+16.0%) and Queensland (+17.6%) are showing considerable strength, while the larger markets of NSW (+4.5%) and Victoria show more subdued growth.
House Price Growth (Regional)
+11.2%
vs 10yr avg +6.9%
Rising
Attached Price to Income (Capitals)
6.69x
12.3% below 10yr avg
Falling
House Price Growth (NT)
+27.0%
Fastest growing state/territory
Rising
Attached Sales Volume (Capitals)
-0.2%
vs 10yr avg +2.5%
Falling

Housing Finance

Investor surge propels housing finance to 14.3% annual growth.
Housing finance commitments totalled $140.2bn in December 2025, up 14.3% annually, far exceeding the 10-year average. Growth is overwhelmingly driven by investor lending, which surged 31.9%–more than four times faster than owner-occupiers. Tasmania, NSW, and Victoria are leading the recovery, which is accelerating despite the high interest rate environment.

Housing finance commitments totalled $140.2bn in December 2025, marking a strong 14.3% increase compared to a year ago. This rate of annual growth is significantly outpacing the 10-year average of 3.2%, indicating a sharp acceleration in lending activity. Following a period of moderation, housing finance has recovered strongly, with momentum building towards the end of the year, driven by renewed confidence in the housing market.
The market recovery is being led by investors. Owner-occupier lending rose to $94.8bn (67.6% of total), while investor lending surged to $45.4bn (32.4% of total). Annually, owner-occupier lending grew a modest 7.5%, whereas investor lending expanded by a remarkable 31.9%. This investor growth is 19.1 percentage points above its 10-year average. Investors now account for 32.4% of new lending, a rising share that signals a clear shift in market dynamics towards rental yields and capital growth.
On a state-by-state basis, lending growth was strongest in Tasmania (+21.7%), New South Wales (+19.3%), and Victoria (+15.5%), all of which recorded growth well above the national rate. In contrast, Western Australia (+8.2%) and South Australia (+6.4%) experienced more subdued recoveries. This broad-based recovery in housing credit is occurring despite a high interest rate environment, with the powerful momentum in housing prices likely encouraging both investors and owner-occupiers to re-enter the market.
Housing Finance (Investor)
+31.9% YoY
Growth is +19.1pp above the 10-year average
Rising
Housing Finance (Total)
$140.2bn
Annual growth (+14.3%) is 11.1pp above 10-year avg
Rising
Investor Share of Lending
32.4% of total
Growing rapidly as investor lending outpaces owner-occupiers
Rising
TAS Lending Growth
+21.7% YoY
Fastest growing state, outpacing the national average
Rising

Monetary & Financial Conditions

RBA's March hike pushes cash rate to 4.10%, elevating borrower costs.
The RBA cash rate hit 4.10% in March 2026 following a 25bp hike. This hawkish stance has pushed mortgage rates over 24% above their 10-year average, with bond markets signalling tight conditions ahead. The two-year bond yield at 4.23% is nearly double its long-term average, reflecting expectations of persistent inflation and further central bank action to contain it.

The RBA cash rate stands at 4.10% as at March 2026, a level significantly above its long-term average, reflecting a firm tightening stance. The RBA raised rates by 25 basis points in March, the latest in a series of hikes designed to combat high inflation. This move underscores the central bank's commitment to returning inflation to its target band, with market sentiment, reflected in economist forecasts, pointing towards the possibility of further tightening.
The policy tightening is transmitting directly to borrowers. Standard variable mortgage rates for owner-occupiers were 6.30% in February 2026, with three-year fixed rates at 6.24%. This represents a 2.20% spread over the cash rate. Small business loan rates are also elevated at 8.50%. For households, variable mortgage rates are now 24.4% higher than their 10-year average, placing considerable pressure on budgets and disposable incomes.
The bond market is pricing in continued pressure. The Australian two-year government bond yield sits at 4.23%, while the ten-year yield is higher at 4.76%. This creates a positive yield curve spread of 53 basis points, which typically signals expectations of future economic growth. However, the highly elevated short-term yield indicates that markets are bracing for monetary policy to remain tight, or even tighten further, in the near term before any potential easing.
Two Year Bond Yield
4.23%
+99.4% vs 10yr avg
Rising
Ten Year Bond Yield
4.76%
+71.1% vs 10yr avg
Rising
3-Year Fixed Mortgage
6.24%
+37.7% vs 10yr avg
Rising
Variable Mortgage
6.30%
+24.4% vs 10yr avg
Rising

FX Rates & Commodities

AUD elevated at US$0.71, but faces headwinds from softer commodity prices.
The Australian dollar trades at US$0.7100 as at February 2026, up 14.5% annually and 7.6% above its long-term average. The currency shows significant strength against the Yen, but the outlook is tempered by a sharp downturn in mining commodity price growth, which has fallen well below its 10-year average. Rural commodity performance remains a bright spot, providing some support.

The Australian dollar is trading at US$0.7100 as at February 2026, with the trade-weighted index standing at 65.50. This places the AUD 7.6% above its 10-year average of US$0.6600, while the TWI is 6.8% above its long-term average of 61.33. Despite being up 14.5% over the year, the currency's recent rally is showing signs of reversing amid a broader flight to the US dollar.
Against major currency crosses, the AUD's strength is most pronounced against the Japanese Yen, trading at ¥110.87—a full 14.2% above its 10-year average. The currency is also trading at €0.6000 against the Euro. This broad strength, supported by Australia's attractive interest rate differential, benefits importers and travellers but creates headwinds for exporters in education and tourism.
The outlook is clouded by softening commodity prices, with the overall index growth at -2.9% versus a 10-year average of +9.0%. This weakness is concentrated in mining commodities (growth at -4.2%), which has fallen 14.0pp below its long-term average. In contrast, rural commodity price growth remains strong at +7.9%. While lower export prices could weigh on the AUD, Australia's terms of trade remain elevated, providing a floor for the currency for now.
AUD / JPY
110.87
+14.2% vs 10yr average
Rising
Commodity Price Index - Mining AUD (Growth)
-4.2%
-14.0pp vs 10yr average growth
Falling
Commodity Price Index - Rural AUD (Growth)
+7.9%
+3.8pp vs 10yr average growth
Rising
AUD/USD
0.7100
+7.6% vs 10yr average
Stable

Employment

Unemployment rises above average as job growth shifts to part-time roles.
Australia's unemployment rate stood at 4.3% in February 2026, now above the ten-year average as the market moderates. Total employment grew 1.8% over the year, but this was driven by faster growth in part-time roles. South Australia recorded the nation's strongest employment growth (+3.2%), while the ACT maintained the lowest unemployment rate (3.5%) despite seeing a sharp annual increase in its rate.

The unemployment rate in Australia stands at 4.3% as at February 2026. This is above the 10-year average of 4.0%, signalling a loosening in what was a historically tight labour market. The unemployment rate has trended up from prior lows, indicating that the labour market is softening in response to broader economic pressures. This marks a shift from the 'low and stable' conditions seen previously, with the rate now clearly rising.
Total employment reached 14.75 million persons, an increase of 1.8% over the year. The composition of this growth suggests a weakening in job quality. Full-time employment grew by a modest 1.2%, while part-time employment expanded by a much stronger 3.1% over the past twelve months. This highlights that recent job creation has been concentrated in less secure, part-time positions, a typical feature of a cooling economy.
Across the states, labour market conditions are varied. The Australian Capital Territory (3.5%) and South Australia (3.9%) hold the lowest unemployment rates. However, in terms of job creation, South Australia led the nation with employment growth of 3.2% over the year, outpacing all other states. While the ACT's unemployment rate is the country's lowest, it also recorded the fastest annual growth in its unemployment rate (+23.2%), pointing to a rapidly shifting local environment.
Unemployment Rate
4.3%
Above 10-year average of 4.0%
Rising
Part-Time Jobs
+3.1% YoY
Growing faster than full-time (+1.2%)
Rising
SA Employment Growth
+3.2% YoY
Highest employment growth in Australia
Rising
ACT Unemployment Rate
3.5%
Lowest rate but fastest YoY growth (+23.2%)
Rising

Job Advertisements

Job ads cool from post-pandemic highs, signalling a softer labour market ahead.
Australian job advertisements totalled 629,900 in Feb-26, down 1.6% year-on-year. This marks a distinct cooling, with growth falling 5.8 percentage points below the 10-year average. The slowdown was led by a sharp -7.7pp deviation from trend in professional roles. While South Australia (+2.0%) and WA (+1.6%) saw growth, ads in Victoria (-5.2%) and the ACT (-17.2%) fell sharply, indicating a moderating and divergent labour market.

Job advertisements in Australia totalled 629,900 in February 2026, marking a clear moderation in hiring intentions. While job ads remain elevated compared to pre-pandemic levels, they have fallen from the recent peak, down 1.6% compared to a year ago. The pace of growth is now 5.8 percentage points below the 10-year average, signalling a shift in the labour market. As a key leading indicator for employment, this trend points towards a cooling in jobs growth over the coming months.
The slowdown in hiring is broad-based but most acute in the professional services sector. Job ads for professional roles stood at 179,100, with annual growth of -3.7% running 7.7 percentage points below its 10-year average. Demand for industrial and trades roles was roughly flat (-0.2%), but this also represents a significant slowdown compared to its long-term average growth of 6.2%. This compositional shift suggests that the softening in labour demand is now extending beyond cyclical sectors to the core services economy.
The divergence in labour market conditions across states is stark. South Australia (+2.0%) and Western Australia (+1.6%) were the only major states to record an increase in job ads over the past year. In contrast, hiring activity has slowed significantly in the largest states of NSW (-1.3%) and Victoria (-5.2%). The sharpest downturns were recorded in the territories, with the ACT plunging -17.2%. This pattern suggests the national labour market is cooling at different speeds, with eastern states lagging.
Job Ads (Professional) Growth vs Avg
-7.7pp
Annual growth is 7.7pp below the 10-year average of +4.0%
Falling
Job Ads (ACT) YoY
-17.2%
Sharpest decline of all states and territories
Falling
Job Ads (Total) YoY
-1.6%
Growth now 5.8pp below the 10-year average, cooling from peaks
Falling
Job Ads (SA) YoY
+2.0%
Fastest growing state, bucking the national downward trend
Rising

Wages & Earnings

Wage growth stays firm, delivering a small gain in real purchasing power.
Wages grew 3.4% to Dec-25, outpacing the 10-year average of 2.6%. This delivered a marginal 0.2% increase in real wages, with inflation at 3.2%. Growth has moderated from 4.1% a year ago. WA leads states in WPI growth (+4.1%), while NSW leads in earnings growth (+4.7%). Full-time annual earnings now average $109,517.

Wages grew 3.4% over the year to December 2025, as measured by the Wage Price Index. This is above the 10-year average wage growth of 2.6%. Wage growth has moderated from 4.1% a year ago, indicating that while the peak in growth has passed, it remains robust and well above the long-term trend.
Average full-time earnings reached $2,129 per week in November 2025, annualising to $109,517. With inflation at 3.2%, real wage growth was positive at 0.2%. This means workers experienced a slight gain in purchasing power of 0.2% over the year, a welcome turnaround from recent periods of negative real wages, though still below the 10-year average real wage growth of 0.3%.
Across the states, Western Australia saw the fastest WPI growth at +4.1%, while the Northern Territory lagged at +2.2%. WA also recorded the highest weekly earnings of $2,304. Interestingly, while NSW had strong WPI growth (+3.7%), it led all states on the growth of actual weekly earnings (+4.7%), suggesting a divergence in its labour market dynamics.
Real Wage Growth (YoY)
+0.2%
A return to positive growth as inflation eases
Rising
Wage Price Index (YoY)
+3.4%
Below last year (4.1%) but above 10-yr avg (2.6%)
Falling
State WPI Growth Range
WA (+4.1%) to NT (+2.2%)
Wide divergence in wage pressures across states
Stable
Avg. Weekly Earnings
$2,129
Annualises to $109,517 for full-time workers (Nov-25)
Rising

Household Consumption

Consumption growth moderates as households prioritise essential spending.
Australian household consumption reached $378.3bn in the December quarter 2025, up 5.6% annually. Growth is moderating as households absorb higher costs, with spending on power surging while transport slows dramatically. Queensland leads state growth, while NSW and Victoria lag.

Household consumption expenditure totalled $378.3bn in the December quarter 2025, representing a 5.6% increase over the year. This comprehensive data from the quarterly National Accounts shows that on a per capita basis, spending reached $13,645 per person, up 4.0% annually. The per capita figure stands 20.8% above its long-term average, though the annual growth rate for total consumption is moderating.
A clear divergence is evident between essential and discretionary spending. Essential costs like power saw expenditure surge by 9.6% over the year, significantly outpacing the 10-year average growth of 3.0%. In contrast, discretionary spending is slowing, with alcohol consumption growing just 1.4% (vs 10-yr avg of 3.9%). The most notable standout is the sharp deceleration in transport spending growth to 4.5%, a stark drop from the 10-year average of 26.6%, signalling households are cutting back significantly in this area.
State-level data reveals uneven consumption patterns across the country. Queensland is the clear leader in annual growth (+3.4%), followed by Victoria and Western Australia (both +2.5%). Growth was weakest in Tasmania (+1.7%), New South Wales (+1.9%) and South Australia (+2.1%). When accounting for population changes, the slowdown in the major states is more pronounced, with per capita spending in NSW (+0.6%) and Victoria (+0.7%) growing at a much slower pace than the national average.
Hhconsumptionpower (YoY Growth)
+9.6%
+6.6pp vs 10yr avg of +3.0%
Rising
Hhconsumptiontransport (YoY Growth)
+4.5%
-22.1pp vs 10yr avg of +26.6%
Falling
Hhconsumptiontotalpercapita (Level)
$13,645
20.8% above long-term average
Rising
Hhconsumptionalcohol (YoY Growth)
+1.4%
-2.5pp vs 10yr avg of +3.9%
Falling

Household Spending

Household spending grows, but consumers are cutting back on discretionary items.
Australian household spending reached $232.0bn in September 2025, up 5.1% annually. While essential spending remains robust, significant pullbacks in discretionary categories like alcohol and clothing signal growing consumer caution. Spending growth was strongest in Western Australia (+7.6%) and weakest in Victoria (+3.6%), indicating a moderating and increasingly fragmented consumer landscape.

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 $33,358 per person annually, which is 20.9% above the long-term average, indicating that while overall spending is elevated, the growth rate is moderating. The annual growth is a mix of categories performing both above and below their long-term averages, suggesting a nuanced consumer environment.
A clear divergence has emerged between essential and discretionary spending. Essential categories like Health (+8.1%) and Food (+6.4%) saw robust growth, well above trend. In contrast, many discretionary areas show signs of a consumer pullback. Spending on Alcohol plummeted, growing -18.0% against a 10-year average of +0.2%. Growth in Clothing (+3.3%) and Hotels & Restaurants (+6.1%) was also significantly below their respective 10-year averages of 5.4% and 8.2%, reflecting households redirecting funds amid cost pressures.
State-level data reveals a varied national picture. Western Australia (+7.6%), Queensland (+6.2%), and the Northern Territory (+6.2%) led the nation with the strongest annual growth in household spending. Conversely, the largest states of New South Wales (+4.7%) and Victoria (+3.6%) recorded the slowest growth, alongside the ACT (+4.2%). This slowdown in the major economies, combined with the sharp decline in discretionary categories, suggests that higher interest rates and inflation are increasingly impacting real household incomes and forcing spending trade-offs.
Alcohol Spending Growth (YoY)
-18.0%
vs 10yr avg of +0.2%. The most significant pullback category.
Falling
Total Spending Per Capita
$33,358
+20.9% above the long-term average, but growth is slowing.
Rising
Miscellaneous Spending Growth (YoY)
+8.7%
vs 10yr avg of +5.3%. A key standout for discretionary resilience.
Rising
WA Spending Growth (YoY)
+7.6%
Fastest growing state, significantly outpacing NSW (+4.7%) & VIC (+3.6%).
Rising

Inflation & Cost of Living

Inflation eases but remains stubbornly above the RBA's target.
Inflation in Australia was 3.7% in the year to February 2026, remaining above the RBA's 2-3% target. The annual rate continues to moderate, though price pressures persist in key categories. Inflationary pressures were strongest in Western Australia (+4.9%), while the Northern Territory (+3.2%) saw the slowest price growth.

Inflation in Australia was 3.7% in the year to February 2026. This remains above the RBA's 2-3% target band. The annual rate eased slightly from 3.8% in January, suggesting a continued but slow moderation trend. While this shows a welcome directional trend, the RBA notes that underlying inflation remains sticky. Upside risks from fuel prices and geopolitical tensions also remain a key concern for policymakers on the path back to the target range.
The headline figure masks significant divergence at the category level. Several key components of the CPI basket are experiencing inflation well above their long-term averages. The most significant pressures are seen in categories where prices are between 8% and 11% above their historical norms, indicating intense and concentrated cost increases. In contrast, some relief was found in other areas of the consumer basket, with certain goods and services showing inflation below trend, though not enough to offset the major price hikes elsewhere.
Across Australia, inflation varies considerably. Western Australia (+4.9%), Tasmania (+4.0%), and New South Wales (+3.8%) recorded price growth exceeding the national average, indicating stronger cost-of-living pressures. Conversely, South Australia (+3.4%), Victoria (+3.3%), and the Northern Territory (+3.2%) experienced more modest inflation. This divergence highlights the differing economic conditions faced by households across the country.
Headline CPI (YoY)
+3.7%
Above the RBA's 2-3% target band
Falling
WA Inflation (YoY)
+4.9%
Fastest inflation growth among all states
Rising
Top Inflating Category (Index)
104.5
10.9% above its 10-year average of 94.2
Rising
NT Inflation (YoY)
+3.2%
Slowest inflation growth among all states
Stable

Equities & Superannuation

Australian equities show growth despite volatility; superannuation assets swell.
As of February 2026, the ASX 200 closed at 9,198 points, reflecting a 7.8% capital growth year-on-year, a pace slightly above its ten-year average. The All Ordinaries also surged to 9,435 points, indicating robust equity performance. Total superannuation assets reached $375.4 billion, marking a significant 39.8% increase over the year and substantially exceeding its average. Despite recent market volatility, both equities and superannuation exhibit strong underlying growth trends.

The ASX 200 closed at 9,198 points as at February 2026, exhibiting 7.8% capital growth over the year. The All Ordinaries reached 9,435 points, reflecting 12.3% capital growth, which compares favorably to its average annual capital growth of 6.8%. Total market capitalisation stood at $3.45 trillion, marking a 10.3% increase. While recent market sentiment has seen some pullback and elevated volatility, these indices demonstrate a strong upward trajectory, positioned at high levels. It is important to note these are price indices measuring capital growth only and do not include dividend distributions.
Superannuation assets total $375.4 billion as at February 2026, rising 39.8% over the year. This growth significantly outpaces the sector's average value of $268.6 billion, demonstrating the robust expansion of Australia's retirement savings pool. Despite short-term market volatility, the long-term investment horizon for superannuation continues to yield substantial growth, underscoring its foundational role in the Australian financial landscape.
The Australian equities market has experienced recent volatility, including a brief period entering correction territory as observed in external commentary, yet it has shown resilience with a partial rebound. The underlying growth in both the All Ordinaries and ASX 200 indicates sustained investor confidence. Superannuation funds, while exposed to these market fluctuations, emphasize the long-term perspective of retirement savings, with median growth funds demonstrating strong historical returns. This context suggests a market navigating short-term pressures while maintaining a positive trajectory in key financial aggregates.
All Ordinaries
9,435
YoY: +12.3%, 10yr avg: +6.8%
Rising
ASX 200
9,198
YoY: +7.8%
Rising
Market Capitalisation
$3.45 trillion
YoY: +10.3%
Rising
Superannuation Assets
$375.4 billion
YoY: +39.8%, vs avg: $268.6 billion
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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