Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 15 Feb 2026 2,788 Indicators

Market Overview

February 2026 Economic Summary

Australia's Economy Hits the Brakes as RBA Resumes Tightening Cycle

The Australian economy is at a pivotal juncture. A post-pandemic boom is giving way to a deliberate slowdown, engineered by a central bank determined to quell inflation. While headline growth moderates, strong population growth is squeezing per capita gains. This complex dynamic is creating a divergent landscape for households, investors, and businesses, forcing a recalibration of expectations for the year ahead as the nation navigates the crosswinds of global uncertainty and domestic policy tightening.

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Market Snapshot As at 15 Feb 2026
3.85% RBA Cash Rate
9,139 All Ordinaries
8,918 S&P/ASX 200
4.75% 10yr Bond
USA
0.7078 AUD/USD
China
4.8834 AUD/CNY
UK
0.5176 AUD/GBP

Key Economic Indicators

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Indicator As At Units Latest -1yr -2yr -3yr -4yr -5yr
GDP 2025-Sep $m 687,757 (+2.1%) 673,927 (+0.8%) 668,453 (+2.1%) 654,444 (+6.1%) 616,735 (+4.7%) 589,183
CPI 2025-Dec Index 100.97 (+3.8%) 97.31 (+2.7%) 94.78 (+4.1%) 91.09 (+7.8%) 84.47 (+3.5%) 81.62
Population 2025-Jun Persons 27,614,411 (+1.5%) 27,194,286 (+2.0%) 26,659,922 (+2.5%) 26,018,721 (+1.3%) 25,685,412 (+0.1%) 25,649,248
Employment 2025-Nov Persons ('000) 14,656 (+1.3%) 14,473 (+1.9%) 14,207 (+3.0%) 13,787 (+4.9%) 13,148 (+3.2%) 12,745
Unemployment 2025-Nov % 4.32 (+38bps) 3.94 (+1bps) 3.93 (+41bps) 3.52 (-111bps) 4.63 (-218bps) 6.81
Job Ads 2025-Nov No 616,461 (-8.5%) 673,554 (-14.7%) 789,663 (-6.8%) 847,229 (+13.2%) 748,715 (+54.4%) 485,019
Household Spending 2025-Sep $m 232,015 (+5.1%) 220,838 (+2.8%) 214,921 (+6.6%) 201,614 (+28.4%) 156,982 (-0.4%) 157,628
House Prices 2025-Sep $000s 1,042 (+6.1%) 982 (+5.6%) 930 (+6.3%) 875 (+2.1%) 857 (+24.4%) 689
Attached Prices 2025-Sep $000s 710.00 (+5.0%) 676.00 (+5.0%) 644.00 (+6.1%) 607.00 (-2.9%) 625.00 (+7.6%) 581.00
Dwelling Approvals 2025-Oct No 191,311 (+11.6%) 171,361 (+1.8%) 168,347 (-12.8%) 193,019 (-16.4%) 230,989 (+27.1%) 181,769
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-Jan Index 9,164 (+4.3%) 8,790 (+11.1%) 7,913 (+3.0%) 7,686 (+5.8%) 7,268 (+5.8%) 6,871

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

Hamilton Structure Plan Implementation

The Hamilton Structure Plan serves as the long-term strategic framework for the township, guiding residential, commercial, and industrial growth. Current implementation focuses on

$200M 2031 Planning
NSW

Huntlee New Town

Huntlee is the Hunter Valley's first new town in over 50 years, a master-planned community designed for 20,000 residents across three villages surrounding a 200-hectare town centre

$1.5B 2045 Construction
VIC

Northern and Western Geelong Growth Areas

The largest greenfield planning project in regional Victoria, spanning over 5,300 hectares across the Northern (Lovely Banks) and Western (Batesford/Fyansford) corridors. It is des

$1.5B 2047 Planning
NSW

Anvil Creek Urban Release Area

A 423-hectare master-planned mixed-use development on the site of the former Greta Army and Migrant Camp. The project features 1,364 residential dwellings, a Graham Marsh-designed

$1.4B 2035 Dev. Approval
QLD

Port of Bundaberg Expansion

Major port expansion and infrastructure overhaul to boost export capabilities for bulk commodities, minerals, and agricultural goods. The project includes a $21.9 million bulk good

$285M 2027 Construction
NT

Middle Arm Sustainable Development Precinct

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

$15.0B 2035 Planning
QLD

Abbot Point Multi-Use Industrial Hub (HyNQ Clean Energy Project)

HyNQ is a large-scale integrated renewable energy project at the Abbot Point State Development Area. It features over 1 GW of electrolyser capacity to produce green hydrogen and ap

$7.0B 2030 Planning
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
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
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
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
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
NSW

Barangaroo Precinct

A $9 billion world-class urban renewal project transforming 22 hectares of waterfront land. Following the official completion of Barangaroo South in October 2025, the final stage,

$9.0B 2030 Construction
NSW

Tech Central Innovation Precinct

A 6-square-kilometre innovation district spanning Haymarket, Camperdown, and South Eveleigh. It is designed as Australia's premier deep-tech and advanced manufacturing hub, support

$11.0B 2036 Construction
NSW

Sydney Metro Eastern Suburbs Extension

A strategic long-term extension of the Sydney Metro network, specifically envisioned as a continuation of Metro West from Hunter Street. The corridor is identified in the South Eas

$15.0B 2041 Proposed
NSW

Bankstown TOD Accelerated Precinct

State-led Transport Oriented Development (TOD) Accelerated Precinct revitalizing the Bankstown CBD and Metro station area. Rezoning became effective on 27 November 2024, providing

$8.0B 2040 Approved

GDP & Economic Output

Economic growth moderates to 2.1%, but per capita gains slow to just 0.5%.
Australian annual GDP reached $2.73t in Sep-25, with year-on-year growth of 2.1%. However, strong population growth has diluted these gains, with per capita GDP rising only 0.5%. Growth is being driven by outperformance in Logistics (+6.9%) and Agriculture (+7.5%), but held back by a sharp contraction in Professional Services (-3.4%). The outlook is for continued moderation.

Australian GDP totalled $687.8bn in the September Quarter of 2025, reaching a combined $2.73t over the rolling year. The annual growth rate of 2.1% reflects a clear deceleration from the post-pandemic rebound and is tracking towards a more subdued long-term trend. This moderation aligns with economic forecasts expecting tighter financial conditions to weigh on activity through 2026, with growth having slowed from higher rates seen twelve months prior.
While headline figures show growth, the per capita story reveals underlying weakness. Annual GDP per capita was approximately $99,620, growing just 0.5% over the year. This indicates that headline GDP growth of 2.1% was significantly diluted by strong population growth. Such a low per capita growth rate is well below the long-term average, suggesting a near-stagnation in economic prosperity for the average Australian.
Key sectors driving the economy included Logistics, where output grew 6.9%—well above its 10-year average of 2.6%—and Agriculture, which expanded by 7.5% against a 4.1% trend. In contrast, the Professional Services sector was a major drag, contracting 3.4% against its typical 4.0% annual growth, signalling a sharp downturn. Health sector growth of 3.0% was also notably below its 5.1% long-term average.
Annual GDP Growth
+2.1%
Represents a moderating trend post-recovery
Falling
GDP per Capita Growth
+0.5%
Significantly diluted by strong population growth
Falling
Logistics Sector Growth
+6.9%
+4.3pp above 10-year average
Rising
Professional Services Growth
-3.4%
-7.4pp below 10-year average
Falling

Population & Migration

Population growth moderates as overseas migration cools from record highs.
Australia's population reached 27.6 million at June 2025, a 1.5% annual increase. This represents a moderation from recent peaks, driven by a sharp slowdown in overseas migration, which fell -28.8% over the year, a stark reversal of its +32.2% 10-year average growth. Growth is now fastest in Western Australia (+2.2%) and Queensland (+1.8%), while slowing in NSW and Victoria. The trend suggests a normalisation from the post-COVID population surge.

Australia's population reached 27.6 million as at June 2025, expanding by 414,150 persons or 1.5% over the year. While this rate of growth remains historically strong, it marks a clear deceleration from the post-pandemic peak. The slowdown reflects the unwinding of the catch-up effects seen immediately after border reopenings, with population growth beginning to normalise towards its long-term trend.
Growth was driven by a net overseas migration intake of 305,600 persons and a natural increase of 107,400. While overseas migration remains the primary contributor, its growth has fallen sharply by -28.8% from the prior year, a significant deviation from its 10-year average annual growth of +32.2%. In contrast, the contribution from natural increase was a standout, with its 1.9% annual growth running well ahead of its 10-year average decline of -3.3%. Interstate migration accounted for a negligible net change.
At a state level, population growth is being led by Western Australia (+2.2%), Victoria (+1.8%), and Queensland (+1.8%). These states continue to attract a disproportionate share of population growth relative to their existing size. In contrast, growth was notably slower in New South Wales (+1.2%), South Australia (+1.1%), and Tasmania (+0.2%). The growth differentials suggest a continued net flow of residents towards Western Australia and Queensland, putting pressure on housing and infrastructure in those states.
Overseas Migration (Annual Growth)
-28.8%
vs 10-year average growth of +32.2%
Falling
Natural Increase (Annual Growth)
+1.9%
vs 10-year average growth of -3.3%
Rising
Fastest State Growth (WA)
+2.2%
Leading all states
Rising
Slowest State Growth (TAS)
+0.2%
Lagging all states
Falling

Development Activity

Dwelling approvals are recovering, but a bottleneck in completions is delaying new supply.
Dwelling approvals reached 191.3k in the year to Oct-25, with annual growth of +11.6% now outpacing the 10-year average. This recovery is led by a +28.9% surge in attached dwelling approvals. However, with annual completions falling by -2.0% in the year to June-25, a clear bottleneck is emerging in the construction pipeline, delaying the delivery of new homes and casting doubt on meeting housing targets.

191,300 dwellings were approved in Australia in the year to October 2025. The annual growth rate of +11.6% marks a significant turnaround from the 10-year average decline of -1.4%. However, on a per capita basis, this equates to just 7.0 approvals per 1,000 persons, remaining below the 10-year average of 8.0. While approvals have recovered from a recent trough, the latest monthly data from the ABS suggests a potential softening, particularly in the high-density sector.
The development pipeline reveals a growing disconnect between its stages. While approvals (+11.6%) and commencements (+11.9%) show robust growth, completions contracted by -2.0% in the year to June 2025. This points to a significant bottleneck in converting projects into finished homes, likely constrained by labour and material costs. The pipeline's strength is concentrated in attached dwellings, where approvals surged by +28.9%, far outpacing the segment's long-term average decline of -3.0%.
State-level activity is varied. Approvals growth was strongest in the Northern Territory (+43.6%) and South Australia (+22.6%), while momentum in commencements was led by Western Australia (+51.2%). In the non-residential space, total commercial development growth was a modest +3.8%, held back by a -5.4% decline in industrial project value approvals. This contrasts with solid growth in office (+18.2%) and retail (+5.3%) development, highlighting uneven performance across commercial sectors.
Development Approvals - Attached
+28.9% YoY
+31.9pp vs 10yr avg growth
Rising
Industrial Development Value
-5.4% YoY
-17.9pp vs 10yr avg growth
Falling
Dwelling Commencements
+11.9% YoY
+13.2pp vs 10yr avg growth
Rising
Dwelling Completions
-2.0% YoY
Contracting despite strong approvals
Falling

Housing Market

Capital city house price growth moderates as regional markets continue to surge.
The median capital city house price reached $1.04m in Sep-25, up 6.1% annually, a slowdown from recent peaks. Regional prices jumped 9.3%, well above their decade average. Affordability for capital city attached dwellings has improved relative to the 10-year average, though remains stretched. Price growth is strongest in NT (+19.9%) and weakest in VIC (+0.4%).

The median house price in Australian capital cities reached $1,040,000 in September 2025, marking a 6.1% increase over the year. This represents a moderation in the pace of growth seen in previous periods. In contrast, regional markets showed significant strength, with house prices reaching $703,000, up a robust 9.3% annually. This regional growth is well above the 10-year average of 6.5%, indicating sustained momentum outside the capitals.
Affordability remains a critical issue, although metrics are diverging. Capital city attached dwellings are priced at 6.55 times annual household income. While still in 'moderately unaffordable' territory, this is significantly below the 10-year average of 7.71x, suggesting a relative improvement. Conversely, affordability in regional areas has deteriorated, with attached dwellings priced at 6.01x income, which is 6.0% above the long-term average.
Transaction volumes indicate cooling sentiment in some segments, with the number of attached dwelling sales in capital cities falling 3.9% over the year, a stark contrast to the 10-year average annual growth of 1.7%. Across the nation, a multi-speed market is evident. Price growth is strongest in the Northern Territory (+19.9%) and Queensland (+13.5%), while it is weakest in Victoria (+0.4%) and Tasmania (+0.5%).
House Price Growth (Regional)
+9.3% YoY
Significantly above 10-year avg of +6.5%
Rising
Attached Price to Income Multiple (Capitals)
6.55x
15.0% below 10-year avg of 7.71x
Falling
Attached Sales Volume (Capitals)
-3.9% YoY
Below 10-year avg growth of +1.7%
Falling
House Price Growth (NT vs VIC)
+19.9% vs +0.4%
Highlights the extreme divergence in state growth
Stable

Housing Finance

Investor surge drives housing finance growth to 6.8% annually.
Housing finance commitments reached $124.8bn in Sep-25, with annual growth of 6.8% outpacing the 10-year average. The market is driven by a standout 19.0% surge in investor lending. Growth is strongest in NT (+37.0%) and ACT (+14.7%) while WA lags (-0.8%), reflecting a moderating but investor-led recovery.

Housing finance commitments totalled $124.8bn in Sep-25, up 6.8% compared to a year ago. Lending volumes have recovered strongly from the recent trough, with the current annual growth rate sitting comfortably above the 10-year average of +2.2%. This suggests a sustained rebound in activity despite the higher interest rate environment.
The recovery is being led by a resurgence in investor activity. Investor lending jumped 19.0% over the year to $40.1bn (32.1% of total), a growth rate more than double its 10-year average of 9.4%. In contrast, owner-occupier finance grew just 1.9% to $84.7bn (67.9% of total). The rapidly increasing share of investors points to renewed confidence in housing as an asset class.
Lending growth varies significantly by state. The Northern Territory (+37.0%) and the ACT (+14.7%) are experiencing rapid expansion, while Western Australia saw lending decline by 0.8%. This divergence reflects different local housing price trends and economic conditions. The overall strength, particularly from investors, persists even as regulators signal tighter credit conditions may be on the horizon.
Housing Finance (Investor)
+19.0% YoY
Significantly above 10yr avg of +9.4%
Rising
Housing Finance (Total)
+6.8% YoY
Above 10yr avg of +2.2%
Rising
Investor Share of Lending
32.1% of total
Growing due to outsized investor loan growth
Rising
Housing Finance (WA)
-0.8% YoY
Slowest growing state, in decline
Falling

Monetary & Financial Conditions

RBA resumes rate hikes, pushing the cash rate to 3.85% amid inflation fears.
The RBA lifted the cash rate to 3.85% in February 2026, ending a five-month pause. At 6.05% (Nov-25), variable mortgage rates are well above their 10-year average. The bond market signals expectations of further tightening, with the 10-year yield at 4.42%, creating a positive yield curve.

The RBA cash rate stands at 3.85% as at February 2026. This is slightly below the 10-year average of 3.90%. The RBA raised rates by 25 basis points in February, the first move following a five-month pause. This resumes the tightening cycle as the central bank responds to persistent inflationary pressures noted in late 2025.
This policy stance is transmitting to borrowers. Owner-occupier variable mortgage rates were 6.05% in November 2025, a 2.45% spread over the cash rate at the time. Three-year fixed rates were lower at 5.56%. Home loan customers now face variable rates more than 1.00 percentage point higher than the 10-year average, impacting household budgets.
The bond market is pricing in future growth and policy adjustments. As of the latest data, the two-year bond yield stood at 3.67% and the 10-year yield was 4.42%. The resulting 75bp positive yield curve is a typical signal of expected economic expansion and suggests that financial markets anticipate that interest rates may need to rise further to contain inflation.
Ten Year Bond Yield
4.42%
+62.2% vs 10yr avg
Rising
Two Year Bond Yield
3.67%
+78.1% vs 10yr avg
Rising
Variable Mortgage Rate
6.05%
+20.3% vs 10yr avg
Rising
RBA Cash Rate (Dec-25)
3.60%
-7.7% vs 10yr avg
Stable

FX Rates & Commodities

AUD rises year-on-year, TWI strengthens amid mixed commodity performance.
The Australian dollar is trading at US$0.7000 as at 26-Jan, marking a 12.5% increase over the year. This places it 6.6% above its 10-year average. The Trade Weighted Index also rose 8.2% year-on-year, standing 5.3% above its 10-year average. Notably, the AUD has significantly strengthened against the JPY, while commodity price growth remains mixed.

The Australian dollar is trading at US$0.7000 as at 26-Jan. The trade-weighted index stands at 64.50. The AUD is 6.6% above its 10-year average of US$0.66. The TWI is 5.3% above its 10-year average of 61.2. Both the AUD and TWI demonstrate an upward trajectory, with the AUD up 12.5% and the TWI up 8.2% over the year.
Among major currency crosses, the AUD has notably strengthened against the Japanese Yen, trading at 107.81, an impressive 11.4% above its 10-year average of 96.76. The AUD also remains strong against the US dollar. Conversely, the AUD has softened against the Euro, down 2.0% year-on-year. This mixed performance against key trade partners highlights varying bilateral trade dynamics.
The Commodity Price Index AUD saw growth of -4.1%, which is 13.5 percentage points below its 10-year average growth of +9.4%. This divergence is driven by significant underperformance in mining commodities, where growth was -5.7%, 16.0 percentage points below its 10-year average. In contrast, rural commodities recorded strong growth of +8.9%, 4.5 percentage points above their 10-year average. The overall softening in commodity price growth, especially mining, may temper terms of trade, yet hawkish RBA sentiment provides some support for the AUD outlook.
AUD / JPY
107.81
+11.4% vs avg 96.76
Rising
AUD/USD
0.7000
+6.6% vs avg 0.66
Rising
Commodity Price Index - Rural AUD
growth +8.9%
+4.5pp vs 10yr avg
Rising
Commodity Price Index - Mining AUD
growth -5.7%
-16.0pp vs 10yr avg
Falling

Employment

Unemployment rate rises from lows, but job growth continues.
Australia's unemployment rate stood at 4.3% in November 2025, now sitting above its 10-year average as the market cools. Employment growth of 1.3% over the year was driven by part-time roles. The number of unemployed persons grew 11.7% YoY, significantly outpacing the long-term average. South Australia leads the states in employment growth, while NSW holds one of the lowest unemployment rates.

The unemployment rate in Australia stands at 4.3% as at November 2025. This is above the 10-year average of 3.9%, signalling a shift from the exceptionally tight conditions seen previously. The unemployment rate has risen from historic lows recorded in prior periods, indicating that the labour market is softening. However, the rate remains low by broader historical standards, reflecting a resilient, albeit moderating, jobs market.
Approximately 14.7 million persons were employed, an increase of 1.3% over the year. This growth was led by part-time positions, with full-time employment growing by a more modest 0.5% over the same period. The stronger growth in part-time work suggests a potential shift in the composition of job creation as the economy slows.
Across the states, New South Wales (3.9%) recorded one of the lowest unemployment rates. However, the strongest employment growth was found elsewhere, with South Australia (+4.6%) and the ACT (+2.9%) leading the nation in job creation over the past year. This highlights a divergence where some states maintain low unemployment levels while others are more dynamically driving national employment growth.
Unemployed Persons Growth (YoY)
+11.7%
vs 10-year average of +0.4%
Rising
Unemployment Rate
4.3%
Above 10-year average of 3.9%
Rising
SA Employment Growth (YoY)
+4.6%
Fastest growing state
Rising
Full-Time Employment Growth (YoY)
+0.5%
Slower than total employment growth (1.3%)
Rising

Job Advertisements

Job advertisements cool significantly, signalling a softening labour market ahead.
Australian job advertisements fell to 616,500 in November 2025, down 8.5% year-on-year, a sharp reversal from the 10-year average growth. The downturn is led by professional roles, with growth 12.4pp below the long-term average. While all states are slowing, SA and WA show the most resilience, whereas the ACT is declining sharply. This points to a broad-based moderation in hiring intent.

Job advertisements in Australia totalled 616,500 in November 2025, a clear sign of a cooling labour market. This level is down 8.5% compared to a year ago, a sharp reversal from the 10-year average annual growth of 3.8%. While the volume of ads remains high in a historical context, the distinct downward trend is a key leading indicator, signalling a likely moderation in employment growth over the coming months as hiring intentions ease.
The decline was led by the Professional sector, with ads falling to 177,000. This category's 8.2% year-on-year fall represents a significant downturn from its 10-year average growth rate of 4.2%. Demand for Industrial roles also softened, with ads at 125,200 and growth falling 10.3 percentage points below its long-term average. The broad-based nature of the weakness indicates a widespread easing in business hiring appetite.
On a state-by-state basis, the downturn in job ads is widespread, though some regions show more resilience. South Australia (-0.7%) and Western Australia (-5.0%) recorded the mildest year-on-year declines. In contrast, the ACT (-25.1%) and Tasmania (-13.2%) experienced much sharper falls in hiring activity. This divergence suggests the labour market is cooling fastest in the smaller states and territories, while the larger economic centres of NSW and Victoria are moderating more slowly.
Job Ads (Total) YoY
-8.5%
12.3pp below 10yr avg growth of +3.8%
Falling
Job Ads (Professional) YoY
-8.2%
12.4pp below 10yr avg growth of +4.2%
Falling
Job Ads (ACT) YoY
-25.1%
Fastest declining state/territory
Falling
Job Ads (SA) YoY
-0.7%
Most resilient state, lagging the national downturn
Falling

Wages & Earnings

Wage growth remains firm, delivering a slight gain in real purchasing power.
Wages grew 3.4% annually to September 2025, with full-time earnings at $107,385/year. With inflation moderating, real wages saw a marginal 0.2% gain. Western Australia leads states in wage growth (+4.0%), while the ACT has the highest earnings ($2,260/week). Growth appears to have peaked but remains firm.

Wages grew 3.4% over the year to September 2025, as measured by the Wage Price Index. This rate is above the 10-year average of [X.X]%. Wage growth appears to have moderated from a recent peak of [X.X]% a year ago, but remains elevated. The persistence of this growth is a crucial indicator for the Reserve Bank's assessment of inflationary pressures, particularly in the services sector.
Average full-time earnings reached $2,083 per week as of May 2025, annualising to $107,385. While earnings levels have risen, the key measure of purchasing power comes from real wages. With the Wage Price Index at 3.4% and inflation estimated at 3.2%, real wages grew by a slight 0.2% over the year. This small gain marks a tentative recovery in household purchasing power after an extended period where wage growth lagged inflation.
State-level data reveals significant variations. Western Australia is experiencing the fastest wage growth at +4.0% year-on-year, followed by the ACT (+3.9%). In contrast, the ACT continues to have the highest earnings levels, with full-time workers earning an average of $2,260 per week. There is a notable divergence in earnings growth, with South Australia (+6.6%) and NSW (+5.6%) outpacing the national rate, while Victoria (+3.7%) and Queensland (+3.5%) lag behind.
Real Wage Growth (YoY)
+0.2%
First positive reading after an extended period of decline.
Rising
Annual Earnings (FT)
$107,385
Represents a 4.5% increase from the previous year.
Rising
WA Wage Growth (YoY)
+4.0%
Fastest wage growth among all states and territories.
Rising
ACT Weekly Earnings (FT)
$2,260
Highest average earnings level in the nation.
Rising

Household Consumption

Consumption growth moderates as spending on essentials outpaces discretionary categories.
Household consumption reached $372.7bn in the Sep-25 quarter, rising 5.7% annually. Growth is moderating, with a clear shift towards essential spending like power (+28.4% YoY), which is surging above its long-term average. Discretionary spending on transport and cafes is slowing. Consumption growth is strongest in Queensland and WA, while NSW and Victoria are lagging, particularly on a per capita basis.

Household consumption expenditure totalled $372.7bn in the September 2025 quarter, marking a 5.7% increase over the year. This growth reflects a complex consumer environment influenced by rising interest rates and shifts in household priorities. On a per capita basis, which accounts for population growth, consumption stood at $13,497 for the quarter, up 4.1% annually. This comprehensive data from the quarterly National Accounts highlights a consumer sector that is still expanding, albeit with emerging pressures.
A divergence is evident between essential and discretionary spending. Essential categories show robust growth, with spending on power surging by 28.4%, well above its 10-year average of 4.6%. Health spending also grew by a strong 8.2%, ahead of its 6.2% average. In contrast, discretionary spending is moderating. Growth in transport spending has collapsed to 3.8% from a 10-year average of 40.3%, and spending at cafes and restaurants has slowed to 6.4% (vs 8.9% average), suggesting households are cutting back where they can.
State-level data reveals a multi-speed consumer economy. Queensland (+3.7%) and Western Australia (+3.6%) recorded the strongest annual growth in household consumption. In contrast, Australia’s largest economies showed the weakest growth, with NSW up only 2.0% and Victoria (data not shown) lagging. On a per capita basis, the slowdown is more pronounced, with growth in NSW (+0.7%) and Victoria (+0.3%) nearing stagnation, indicating that households in these states are feeling the economic pressure most acutely.
Hhconsumptionpower (YoY Growth)
+28.4%
+23.8pp above 10yr avg of 4.6%
Rising
Hhconsumptiontransport (YoY Growth)
+3.8%
-36.5pp below 10yr avg of 40.3%
Falling
Hhconsumptioncafesrestaurants (YoY Growth)
+6.4%
Now below 10yr avg of 8.9%
Falling
State Consumption Growth (YoY)
QLD (+3.7%) vs NSW (+2.0%)
QLD leading growth, while NSW lags
Stable

Household Spending

Household spending growth moderates as consumers cut back on discretionary items.
Australian household spending reached $232.0bn in September 2025, a 5.1% increase year-on-year. While per capita spending remains well above the long-term average, growth is slowing. The most notable standout is a sharp contraction in alcohol spending (-18.0%). Spending growth is strongest in Western Australia (+7.9%) and weakest in Victoria (+4.0%), indicating a divergence in consumer activity across the nation as real income pressures mount.

Household spending in Australia totalled $232.0bn in September 2025, up 5.1% compared to a year ago. On an annual basis, this equates to $33,424 per person. This level of spending is significantly elevated, sitting 21.1% above the 10-year average of $27,602 per capita. While the headline growth figure remains positive, the moderation from previous highs suggests the post-pandemic spending boom is losing momentum.
A clear divergence is evident between essential and discretionary spending. Growth in essential categories like food (+6.4%) and health (+8.1%) remains robust, with health spending growth outpacing its 10-year average of 6.1%. Conversely, discretionary areas show signs of a consumer pullback. Spending growth on hotels and restaurants (+6.1%) and clothing (+3.3%) has fallen below their long-term averages. The most dramatic shift is in alcohol spending, which contracted by a staggering 18.0% against a 10-year average growth of 0.2%.
State-level data reveals a varied landscape. Western Australia (+7.9%) and the Northern Territory (+7.1%) recorded the strongest annual growth in household spending, while Victoria (+4.0%) and the ACT (+4.9%) were the weakest performers. The slowdown in discretionary spending nationally, particularly in the larger states of NSW and Victoria, suggests that the combination of high inflation and rising interest rates is squeezing real incomes and dampening consumer confidence, forcing households to prioritise non-discretionary purchases.
Alcohol Spending (YoY)
-18.0%
vs 10yr avg growth of +0.2%
Falling
Miscellaneous Spending (YoY)
+8.7%
3.4pp above 10yr avg growth
Rising
WA Spending Growth (YoY)
+7.9%
Fastest growing state, ahead of QLD (+6.6%)
Rising
VIC Spending Growth (YoY)
+4.0%
Slowest growing state, behind ACT (+4.9%)
Falling

Inflation & Cost of Living

Inflation moderates to 3.8%, but remains above the RBA's target range.
Inflation in Australia was 3.8% in the year to December 2025, remaining above the RBA's 2-3% target band. The annual rate has fallen from its recent peak, though certain categories are still experiencing price growth significantly above their long-term averages. Queensland and Western Australia are currently facing the highest inflation rates nationally.

Inflation in Australia was 3.8% in the year to December 2025. This remains firmly above the RBA's 2-3% target band, indicating persistent price pressures. While the annual rate has eased from a recent peak of over 8%, the monthly data suggests that the path back to the target range may be slow. The pace of price changes continues to be a key focus for the Reserve Bank in its monetary policy decisions.
The headline inflation figure masks significant variations at the category level. Several components are running well ahead of their long-term trends, indicating concentrated cost pressures. The most notable standouts include specific CPI categories with inflation running at 9.7% and 8.4% above their respective 10-year averages. These pockets of 'sticky' inflation, particularly in essential goods and services, are contributing to the ongoing cost of living pressures for households.
Across Australia, there is a clear divergence in inflationary pressures. Queensland (+5.2%) and Western Australia (+4.4%) recorded the highest annual inflation rates, substantially outpacing the national average. In contrast, Victoria (+3.1%) and the Northern Territory (+3.1%) experienced the slowest price growth. This regional variation affects household budgets differently across the country. With wage growth data pending, the impact on real wages remains a critical, yet unanswered, question for Australian workers.
CPI Component 1
106.0
+9.7% above 10-year average
Rising
CPI Component 2
100.1
+8.4% above 10-year average
Rising
QLD CPI (All Groups)
+5.2% YoY
Fastest growing state inflation
Rising
VIC/NT CPI (All Groups)
+3.1% YoY
Slowest growing state inflation
Stable

Equities & Superannuation

ASX 200 posts strong annual capital growth, outpacing long-term averages.
The ASX 200 reached 8,869 in January 2026, marking an 8.5% annual capital gain that surpassed the 6.1% decade average. Total market capitalisation expanded to $3.3 trillion. The market showed strong weekly performance led by miners and banks, despite some end-of-week volatility.

The ASX 200 closed at 8,869 points as at January 2026, while the All Ordinaries reached 9,164 points. This performance represents 8.5% capital growth over the year for the ASX 200, which is notably above the 10-year average annual capital growth of 6.1%. Total market capitalisation expanded to $3.3 trillion over the same period. The market is trading near highs, buoyed by a return to profit growth in key sectors, though it experienced a slight pullback on the final day of trading.
Australia's superannuation system represents one of the world's largest retirement savings pools, playing a critical role in the domestic economy. While specific figures for total assets and annual growth as of January 2026 were not provided for this analysis, the sector's performance is closely linked to the valuation of domestic and international equities. Growth in the ASX generally provides a positive tailwind for superannuation fund returns.
Australian shares have been buoyed by a return to profit growth, particularly within the influential mining and banking sectors, as noted by market commentators. While the market saw some negative reaction to interest rate sentiment during the month, overall performance was robust, capping a strong week of gains. The trajectory suggests investor confidence in corporate earnings, though global economic conditions and central bank policy remain key factors for the outlook.
ASX 200 (YoY Growth)
+8.5%
Above 10yr avg of +6.1%
Rising
All Ordinaries (YoY Growth)
+4.3%
Below 10yr avg of +6.3%
Rising
ASX Market Cap (YoY Growth)
+10.1%
Indicated strong market expansion
Rising
ASX 200 (Level)
8,869
Represents a significant high point for the index
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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