Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 5 Sep 2026 2,788 Indicators

Market Overview - September 2026 Economic Summary

The illusion of growth: A resilient facade hides Australia's per-capita squeeze

Australia's economic engine is humming, but look under the hood and the gears are grinding. National GDP has reached a formidable $2.78 trillion, growing at 2.1%. Yet, this top-line triumph masks a distinct per-capita squeeze, where individual output barely budged at 0.6%. As Treasurer Jim Chalmers rightly noted, there are five things you need to know about the National Accounts—chief among them that we are expanding by sheer mass rather than momentum, navigating a two-speed reality.

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GDP & Economic Output

Australian GDP reaches $2.78t amid subdued per capita growth
Australian GDP reached $699.5bn in the Jun-26 Quarter, growing 2.1% year-on-year. While headline growth accelerated modestly, per capita output rose just 0.6%. Construction and Financial Services strongly outperformed their historical averages, while the Health sector was a notable drag on national economic expansion.

Australian GDP totalled $699.5bn in the Jun-26 Quarter, reaching a combined $2.78t over the rolling year. This reflects a 2.1% year-on-year growth rate, indicating positive but subdued economic expansion. Overall growth has accelerated modestly from the prior quarter, supported by stable consumption and trade, though overall economic output remains somewhat constrained.
Quarterly GDP per capita sat at $25,159 per person. While headline GDP grew 2.1% over the year, per capita GDP grew just 0.6%, as ongoing population growth diluted broader economic gains. This divergence reveals that underlying prosperity and individual living standards are expanding at a much narrower margin than the headline national growth figures initially suggest.
Sector performance highlights a diverging economic landscape. Construction output grew 4.2%, well above its 10-year average of 0.9%, driven partly by ongoing infrastructure and building activity. Financial Services also outperformed, expanding 4.8% against typical growth of 2.5%. Conversely, the Health sector grew just 1.3%, significantly below its 10-year average of 4.9%.
Annual GDP
$2.78t
Up 2.1% year-on-year
Rising
GDP per Capita
$25,159
Up 0.6% year-on-year
Rising
Construction
+4.2%
vs 10-yr avg +0.9%
Rising
Health
+1.3%
vs 10-yr avg +4.9%
Falling

Population & Migration

Migration retreats from post-COVID highs as population growth moderates to 1.5%
Australia's population reached 27.8 million in December 2025, growing 1.5% over the year. Overseas migration fell 8.9% to 301,000 persons — 488.8pp below its 10-year average growth rate — while natural increase of 112,600 rose 7.9%, tracking 10.5pp above its average. WA (+2.2%) and VIC (+1.7%) lead state growth; TAS (+0.5%) lags.

Australia's population reached 27.8 million as at December 2025, growing 1.5% (approximately 417,000 persons) over the year. Growth has moderated from the post-COVID peak migration surge, with tightened visa settings reducing temporary and student arrivals. The 1.5% rate reflects a normalisation phase — overseas migration is declining while natural increase plays a proportionally larger role in sustaining population gains.
Annual population growth comprised two national components: overseas migration of 301,000 persons (-8.9% YoY) and natural increase of 112,600 persons (+7.9% YoY). Natural increase is the standout, running 10.5pp above its 10-year average growth rate of -2.6%. Overseas migration, while the dominant contributor at 301,000 persons, contracted sharply — its -8.9% growth sits 488.8pp below the 10-year average of +479.9%, reflecting the unwinding of post-COVID catch-up flows. Interstate migration nets to zero at the national level.
State population growth diverges sharply from the national 1.5% rate. WA (+2.2%), VIC (+1.7%) and QLD (+1.6%) outpace the national rate, while NSW (+1.2%), SA (+1.0%) and TAS (+0.5%) lag. In overseas migration, ACT recorded the fastest intake growth (+9.9%) and NT held positive (+2.0%), while TAS (-18.0%), WA (-13.8%) and VIC (-12.2%) saw the sharpest contractions — suggesting rental market pressures and infrastructure capacity are increasingly reshaping where migrants settle.
Natural Increase (Annual)
112,600 persons
Growth +7.9% vs 10yr avg -2.6% — 10.5pp above average
Rising
Overseas Migration (Annual)
301,000 persons
Growth -8.9% vs 10yr avg +479.9% — 488.8pp below average
Falling
Total Population
27.8 million
YoY growth +1.5%, moderating from post-COVID peak
Stable
WA Population Growth
+2.2% YoY
Fastest growing state, outpacing the national rate of 1.5%
Rising

Development Activity

Approvals and commencements surge, but completions lag amid bottlenecks.
Australia saw 206,300 dwelling approvals in the year to July 2026, growing 8.8% year-on-year to outpace the 10-year average decline of 1.5%. Commencements surged 12.1%, but completions fell 3.8%, signalling bottlenecks amid developer failures and private credit stress. The ACT and Queensland led approvals growth, while Victoria contracted.

A total of 206,300 dwellings were approved in Australia in the year to July 2026. This reflects strong momentum, with annual approvals growing 8.8% year-on-year, easily outperforming the 10-year average decline of 1.5%. The pipeline is recovering rapidly from previous weakness, though on a per capita basis, total dwelling commencements sit at just 7 per 1,000 persons, trailing the 10-year average of 8. This signals that while top-level planning has accelerated, physical construction activity is still struggling to keep pace with broader population needs.
The construction pipeline reveals a severe conversion bottleneck. Approvals remain strong at 206,300, while commencements reached 197,500 in the year to March 2026, growing an impressive 12.1% against a 1.7% historical average decline. Critically, completions are failing to keep pace, dropping 3.8% to 172,900, underperforming their 10-year average trend. This suggests developer failures and credit stress are trapping projects midway. By type, house approvals grew 9.0%, marginally edging out attached dwelling growth of 8.6%.
The ACT led national growth, with dwelling approvals surging 39.4% and commencements up 95.4%. The Northern Territory and Queensland also posted robust approvals growth of 24.6% and 22.4% respectively. Conversely, Victoria recorded an outright contraction in approvals, falling 0.6%. Outside of residential builds, commercial property demand is pausing amid recent tax changes. This is reflected in office development building value, which shrank 0.7%, severely underperforming its 10-year average growth rate of 6.3%.
Dwelling Approvals
206.3k
+8.8% vs avg -1.5%
Rising
Dwelling Commencements
197.5k
+12.1% vs avg -1.7%
Rising
Dwelling Completions
172.9k
-3.8% vs avg -1.0%
Falling
Office Dev Value
-0.7%
vs avg +6.3%
Falling

Housing Market

Regional housing outpaces capitals as affordability constraints bite.
Australian capital city house prices reached $1,090,000 in Mar-26, up 9.1% year-on-year. Regional markets were the key standout, with house prices up 11.9% to $754,000, well above their 10-year average growth of 7.0%. Price growth is strongest in NT and WA, while trailing in VIC and NSW. The trajectory highlights robust regional acceleration despite affordability reaching critical levels.

The median house price in Australian capital cities reached $1,090,000 in Mar-26, up 9.1% over the year. Regional house prices reached $754,000, up 11.9%, which compares to average annual growth of 7.0% over the past decade. The trajectory of regional price growth remains highly accelerated, running 4.9 percentage points above historical norms. Meanwhile, capital city attached dwelling prices reached $736,000, rising 7.0% annually as buyers seek more accessible entry points.
Regional houses are priced at 6.72x annual household income. This is above the 10-year average of 6.23x. At 6.72x income, housing affordability is 7.9% worse than the 10-year average, placing significant strain on household budgets and reflecting a moderately unaffordable market. Conversely, capital city attached dwellings at 6.56x income offer improved affordability relative to history, sitting 13.2% below their 10-year average of 7.55x. Regional houses at 6.72x income are now relatively less affordable compared to their historical baselines.
Regional attached dwelling sales volumes grew 6.3% over the year, outstripping the 10-year average volume growth of 2.0% and indicating strong ongoing sentiment. Price growth is strongest in NT (+25.0%), WA (+22.0%), and QLD (+21.4%), and weakest in VIC (+1.8%), NSW (+2.4%), and TAS (+3.5%). NSW maintains the highest capital city house price at $1,490,000, while TAS is the lowest at $740,000, underscoring the deep dispersion across Australian property markets.
Regional House Price
$754,000
+11.9% vs 10yr avg 7.0%
Rising
Capitals House Price
$1,090,000
Up 9.1% YoY
Rising
Regional House Income Multiple
6.72x
Above 10yr avg of 6.23x
Rising
Capitals Attached Income Multiple
6.56x
Below 10yr avg of 7.55x
Falling

Housing Finance

Investor lending accelerates, offsetting owner-occupier declines.
Total housing finance reached $121.4bn in Jun-26, up 1.0% YoY. Investor lending was the key standout, growing 7.9% to outpace its 10-year average. Conversely, owner-occupier commitments fell 1.8%. State growth was led by TAS (+12.8%) while VIC and NSW lagged, reflecting constrained credit capacity.

Housing finance commitments totalled $121.4bn in Jun-26, up 1.0% compared to a year ago. Lending volumes are pacing below the 10-year average for broad growth, reflecting a constrained credit environment. Housing finance has declined from peak levels in recent years, with the trajectory indicating that broad lending has moderated. Current marginal growth is entirely sustained by specific sub-segments rather than a broad-based recovery, highlighting the ongoing impact of restrictive prudential settings.
Owner-occupier lending totalled $83.1bn (68.5% of total), while investor lending reached $38.3bn (31.5% of total). Owner-occupier lending fell 1.8% while investor lending grew 7.9%. Investor lending growth sits impressively above its 10-year average of 5.9%, whereas owner-occupiers are lagging historical trends. Investors account for 31.5% of new lending, trending above the 10-year average. This indicates expanding investor market share as they leverage existing equity to navigate high rates better than constrained owner-occupiers.
Across Australia, TAS (+12.8%) and ACT (+9.0%) recorded the fastest total lending growth. Conversely, WA (+1.4%), VIC (-0.2%), and NSW (-0.5%) experienced the slowest growth. Owner-occupier lending was weakest in WA (-4.7%) and VIC (-2.8%). This state divergence highlights varying credit availability and affordability constraints. The expansion of investor activity and sluggish major state growth link directly to the elevated interest rate environment, which continues to cap borrowing capacity and influence housing price trends.
Total Housing Finance
$121.4bn
Below 10-year average growth trend
Stable
Owner-Occupier Finance
$83.1bn
Below 10-year average growth trend
Falling
Investor Finance
$38.3bn
2.0pp above 10-year average of 5.9%
Rising
TAS Total Lending Growth
+12.8%
Fastest national growth rate
Rising

Rental Market

National rents rise 5.2% YoY, led by Tasmania; NSW, Victoria lag on growth.
The national median rent hit $617/wk in Sep-25 ($608 rolling-year), up 5.2% YoY. CPI Rents growth (3.8%) sits well above its 2.1% decade average, with market rents still outpacing the CPI stock measure. Tasmania (+9.6%) and Queensland (+7.3%) lead state rent growth; Victoria (+4.7%) is slowest, despite NSW holding the highest dollar rents nationally.

The national median rent stands at $617 per week ($608 on a rolling-year basis) as at Sep-25, up 5.2% YoY on the rolling measure. The latest quarter's spot growth (5.5%) runs slightly ahead of the rolling-year pace, pointing to modest acceleration rather than cooling. The 3-bed house rolling-year median has grown a similar 5.3% YoY to $591/wk, indicating the pickup is broad-based across dwelling types rather than concentrated in one segment.
Nationally, the 3-bed house rolling-year median ($591/wk) sits $60 above the 1-bed unit median ($531/wk), a gap of roughly 11%. Larger dwellings show the steepest premiums: the 4-bed house median ($691/wk) is running 50.1% above its decade average, and even 3-bed units ($803/wk) are up 31.4% on trend — an unusually wide unit premium that suggests a well-located, larger-cohort mix is driving unit rents rather than broad affordability substitution into smaller stock.
Across states, Tasmania (+9.6%), Queensland (+7.3%) and WA (+6.4%) lead rolling-year rent growth, while NSW (+6.1%), SA (+5.9%) and Victoria (+4.7%) trail — even though NSW still commands the highest dollar rents nationally at $709/wk rolling-year. Market rents (+5.2% rolling-year) continue to outrun the ABS CPI Rents measure (+3.8% YoY), itself already 81% above its 2.1% decade average, implying further upside in the CPI print as new-tenancy rent growth flows through to the broader stock.
CPI Rents Growth (YoY)
3.8%
vs 2.1% 10-yr avg (+81.0%)
Rising
4-Bed House Rent (Rolling Yr)
$691/wk
vs $460 10-yr avg (+50.1%)
Rising
3-Bed Unit Rent (Rolling Yr)
$803/wk
vs $611 10-yr avg (+31.4%)
Rising
Tasmania Median Rent (YoY)
+11.0%
fastest of any state, vs national +5.5%
Rising

Monetary & Financial Conditions

RBA holds cash rate at 4.35% as bond yields signal continued inflation risks.
The RBA cash rate stands at 4.35% as of August 2026, rising 75bp year-on-year and tracking firmly above its 10-year average of 2.12%. Variable housing rates are a key standout, jumping to 6.80% and restricting national household financing. While official rates appear to be peaking after a prolonged hold, bond markets point to resilient underlying inflation and further tightening risks.

The RBA cash rate stands at 4.35% as at August 2026. This is above the 10-year average of 2.12%. The cash rate has been on hold for 4 months, maintaining a steady policy setting as the central bank assesses the impact of previous adjustments. Official minutes highlight ongoing debate, with resilient core inflation keeping the prospect of additional tightening in play.
The variable owner-occupier mortgage rate sits at 6.80% as of July 2026, while the three-year fixed rate is 6.74%. This translates to a 2.45% spread over the cash rate for variable borrowers. Mortgage holders face rates 1.65% higher than the 10-year average, ensuring that financial transmission remains highly restrictive for Australian households.
In the bond market, the 2-year government bond yield is 4.57% and the 10-year government bond yield stands at 5.22%. This creates a 65bp positive yield curve spread between the two maturities. The positive yield curve suggests markets expect normal economic growth, despite near-term pricing reflecting risks of further monetary tightening before easing begins.
RBA Cash Rate
4.35%
vs 2.12% 10yr avg
Stable
Variable Mortgage
6.80%
vs 5.15% 10yr avg
Rising
10-Year Bond Yield
5.22%
vs 2.93% 10yr avg
Rising
3-Year Fixed Mortgage
6.74%
vs 4.64% 10yr avg
Rising

FX Rates & Commodities

AUD strengthens broadly, led by yen gains and solid rural commodity growth.
The Australian dollar is trading at US$0.7205 for the week ending 5 September 2026. The trade-weighted index has risen 9.4% over the year to August 2026, sitting 6.6% above its 10-year average. The standout is the AUD/JPY, trading 29.6% above historical averages. Growth in rural commodities is accelerating past its long-term trend, while the mining sector trails its historical growth average.

The Australian dollar is trading at US$0.7205 as at 5 September 2026. The trade-weighted index stands at 66.20 for August 2026. The TWI is 6.6% above its 10-year average of 62.09. Driven by an accelerating upward trajectory, the Australian dollar is up 10.8% over the year, while the trade-weighted index is up 9.4% over the year.
Looking at major currency crosses, the standout is the AUD/JPY, which is trading at 114.5400, sitting 29.6% above its 10-year average of 88.3600. Against other key trading partners, the latest snapshot shows the currency at 4.8217 against the Chinese renminbi and 0.5321 against the British pound. In August 2026, the Australian dollar traded at 0.6200 against the euro. This broad appreciation, especially against the yen, impacts Australia's trade competitiveness across the Asian region and global markets.
Commodities remain critical for the currency's outlook, highlighting a divergence in export sectors. Rural commodity prices in Australian dollar terms grew by 11.9% year-on-year, tracking 6.7 percentage points above the 10-year average growth rate of 5.2%. Conversely, mining commodities saw slower growth of 4.9%, tracking 2.7 percentage points below its historical average of 7.6%. With gold reaching $6,214 per ounce, these dynamics reflect mixed terms of trade implications but provide underlying support for the broader Australian dollar.
Trade Weighted Index
66.20
6.6% above 10yr avg
Rising
AUD/JPY
114.5400
29.6% above 10yr avg
Rising
Rural Commodities Index
+11.9%
6.7pp above 10yr avg
Rising
Mining Commodities Index
+4.9%
2.7pp below 10yr avg
Rising

Employment

Australian labour market resilient with unemployment at 4.5% despite slowdown.
The unemployment rate in Australia stands at 4.5% as of Jul-26, remaining below the 10-year average of 4.8%. Total employment grew by 1.3% year-on-year, demonstrating labour market resilience amidst a broader economic slowdown. Queensland led the nation with 1.9% employment growth, while South Australia recorded the lowest unemployment rate.

The unemployment rate in Australia stands at 4.5% as at Jul-26. This is below the 10-year average of 4.8%. Unemployment remains near historic lows, though has edged up recently as the number of unemployed persons grew by 7.0% year-on-year. This increase is well above the historical average decline of 0.5%, indicating a labour market that is low but rising toward its long-term average.
There are 14.8 million persons employed in Australia, up 1.3% over the year. Full-time employment grew by 1.1% over the same period, reaching a total of 10.2 million positions. With overall employment growth slightly outpacing full-time job creation, part-time roles have been a key driver of recent gains. This steady expansion highlights ongoing labour market resilience.
State-level metrics reveal divergent economic conditions across the country. While South Australia has the lowest unemployment at 4.1%, Queensland recorded the strongest employment growth at 1.9% year-on-year. Conversely, Victoria currently holds the highest unemployment rate at 5.1%, and Tasmania experienced a contraction in its workforce, with total employment falling by 0.6%.
Unemployment Rate
4.5%
0.3pp below 10-year avg
Rising
Unemployed Persons
7.0% YoY
7.5pp above 10-year avg
Rising
SA Unemployment Rate
4.1%
Lowest in Australia
Falling
QLD Employment Growth
1.9% YoY
Strongest in Australia
Rising

Job Advertisements

Australian job ads fell 1.7% in July 2026, signalling a cooling labour market.
Job advertisements in Australia totalled 627,200 in Jul-26, down 1.7% year-on-year. This pace is 4.1 percentage points below the 10-year average growth of 2.4%. Industrial job ads were the standout, growing 4.1%, while Professional roles lagged. South Australia (+3.3%) and Western Australia (+2.9%) led state growth, contrasting with sharp declines in Victoria and the territories as the overall market moderates.

Job advertisements in Australia totalled 627,200 in Jul-26. Total job ads fell 1.7% compared to a year ago. Growth is now 4.1 percentage points below the 10-year average of 2.4%, with momentum down from previous peak levels. With the trajectory below average and falling, this acts as a critical leading indicator, signalling weakening future employment trends over the coming three to six months.
Looking at the composition by type, Professional job ads totalled 180,800, with growth falling 1.0% over the year and tracking 4.0 percentage points below its 10-year average. Industrial job ads reached 132,000, bucking the broader trend with a solid 4.1% increase. Industrial ads are the clear standout, accelerating while Professional ads have fallen below average, signalling weakening demand in white-collar sectors while trade-exposed demand remains firm.
Across the states, South Australia (+3.3%) and Western Australia (+2.9%) saw job ads rising most robustly above the national average, signalling early resilience. In contrast, Victoria (-2.6%) and the Northern Territory (-7.7%) have seen the sharpest declines from peak momentum. Since job ads lead employment by 3-6 months, this divergence suggests a cooling labour market in south-eastern states while resource and trade-heavy states maintain stronger forward momentum.
Total Job Ads
627,200
-4.1pp vs 10yr avg growth
Falling
Professional Job Ads
180,800
-4.0pp vs 10yr avg growth
Falling
Industrial Job Ads
132,000
Bucking downward trend
Rising
SA Total Job Ads
Up 3.3%
Fastest national growth
Rising

Wages & Earnings

Australian wages rise 3.2% annually as full-time weekly earnings hit $2,156.
Australian wages grew 3.2% over the year to Jun-26, pushing the Wage Price Index to 161.2. Full-time weekly earnings reached $2,156 as of May-26, representing a 3.5% annual increase. South Australia and Queensland led the states in wage and earnings growth, while the ACT maintained the highest overall income levels.

Wages grew 3.2% over the year to Jun-26, as measured by the Wage Price Index. The index itself reached a level of 161.2, which sits notably 15.1% above its longer-term historical average of 140.0. This robust nominal growth rate reflects steady conditions and ongoing competition for labour, as the trajectory of pay outcomes continues to be monitored across both private and public sector agreements.
Average weekly full-time earnings reached $2,156 per week as of May-26. On an annualised basis, this equates to $111,423 per year for full-time workers. While these figures represent nominal yearly increases of 3.5% and 3.8% respectively, actual gains in worker purchasing power ultimately depend on prevailing inflation. The continued rise in absolute nominal earnings highlights persistent structural demand for full-time employees.
At a state level, South Australia recorded the fastest Wage Price Index growth at 3.6% year-on-year, while the Northern Territory was the slowest at 2.8%. In terms of full-time weekly earnings growth, Queensland was the standout, rising 4.0% annually. Looking at absolute levels, the Australian Capital Territory maintained the highest weekly wages at $2,332, reflecting a stark divergence from Tasmania's national low of $1,904.
Wage Price Index
161.2
15.1% above historical average
Rising
Annual Earnings (FT)
$111,423
Up 3.8% year-on-year
Rising
SA WPI Growth
3.6%
Fastest national wage growth
Rising
ACT Weekly Earnings
$2,332
Highest state earnings level
Stable

Household Consumption

Household consumption rises 4.9% as food spending offsets weakness in transport and alcohol.
Household consumption expenditure totalled $386.6bn in the June quarter 2026, up 4.9% over the year. Per capita consumption rose 3.3% to $13,905, sitting well above its 10-year average. Discretionary alcohol and essential transport spending both contracted and notably lagged historical growth trends. Across the states, the Northern Territory and Western Australia recorded the fastest overall growth.

Household consumption expenditure totalled $386.6bn in the June quarter 2026, climbing 4.9% over the year. This broad measure from the comprehensive quarterly National Accounts points to solid aggregate demand across the economy. On a per person basis, per capita consumption reached $13,905, increasing 3.3% over the year. This per capita level remains a standout, sitting a substantial 20.6% above its 10-year average of $11,532 and indicating that real consumption per person retains robust momentum despite broader cost of living pressures.
Divergent trends are emerging across essential and discretionary spending categories. Within essentials, food consumption remained resilient at $36.6bn, rising 4.5% over the year. Conversely, essential transport expenditure registered a rare contraction, falling 0.7% to sit a stark 6.0 percentage points below its 10-year average growth rate. Discretionary categories also showed signs of consumer fatigue, with alcohol consumption declining 0.9%. This trailed its historical 10-year average growth by 4.2 percentage points as consumers rationalised their non-essential purchases.
Across the country, the Northern Territory and Western Australia led overall consumption growth, rising 2.6% and 2.4% respectively, while Victoria and New South Wales recorded the slowest growth at 1.6%. On a per capita basis, Tasmania and the Northern Territory recorded the fastest growth, while Victoria saw a slight per capita contraction of 0.1%. Despite having the smallest aggregate consumption, the Northern Territory boasts the highest per capita spending at $14,240, well ahead of the national average, whereas Tasmania sits at the lowest end at $11,878.
Total Consumption
$386.6bn
Up 4.9% YoY
Rising
Per Capita Consumption
$13,905
20.6% above 10yr avg
Rising
Transport Spending
-0.7% YoY
6.0pp below 10yr avg
Falling
Alcohol Spending
-0.9% YoY
4.2pp below 10yr avg
Falling

Household Spending

Australian household spending grew 6.2% in July as recreation outperformed.
Household spending in Australia totalled $244.5bn in July 2026, rising 6.2% year-on-year. Discretionary categories like recreation outpaced their 10-year averages, marking a third consecutive monthly rise in spending. The Northern Territory led national growth at 10.1%, while New South Wales lagged at 5.4%.

Household spending in Australia totalled $244.5bn in July 2026, up 6.2% compared to a year ago. The official monthly indicator showed a third consecutive rise, highlighting continued consumption momentum. Annual per capita spending reached $34,808, which is 21.8% above its long-term average of $28,578. The shorter-term per capita equivalent stood at $8,794, surpassing its historical average of $7,176 by 22.5%.
Essential spending on food totalled $37.8bn, rising 5.8% over the past year. In discretionary categories, alcohol spending fell 0.4% to $8.6bn as savings buffers erode. However, recreation was a key standout, growing 8.0% and coming in well above its 10-year average of 5.0%. Miscellaneous spending also outperformed, rising 8.1% against typical growth of 4.5%. This indicates that while consumers face broad pressures, targeted discretionary categories remain robust.
The Northern Territory recorded the fastest total household spending growth at 10.1%, followed by Western Australia at 9.0%. Conversely, growth was slowest in New South Wales and Victoria, both at 5.4%. While New South Wales recorded the highest absolute spending at $76.8bn, its weaker growth reflects the broader impact of inflation and real income effects on consumer confidence. Food spending growth showed a similar split, peaking at 9.1% in the Northern Territory and moderating to 3.9% in the Australian Capital Territory.
Total Spending
$244.5bn
Up 6.2% YoY
Rising
Recreation
+8.0%
Above 5.0% 10yr avg
Rising
Miscellaneous
+8.1%
Above 4.5% 10yr avg
Rising
Alcohol
$8.6bn
Down 0.4% YoY
Falling

Inflation & Cost of Living

Australian inflation holds at 3.5% in July 2026, remaining above RBA target
Headline inflation in Australia was 3.5% in the year to July 2026, remaining persistently above the RBA's 2-3% target band. While pointing towards a broader disinflation trend, acute cost pressures in housing and services are keeping price levels elevated. Tasmania and South Australia led the nation in annual price growth, significantly outpacing the national average.

Inflation in Australia was 3.5% in the year to July 2026. This remains above the RBA's 2-3% target band and sits persistently higher than historical averages. While the annual rate indicates a continuing disinflation trend towards the target, underlying price pressures mean the trajectory from peak inflation is moderating slowly. This pace suggests domestic inflation is still normalising, albeit at a gradual pace that keeps the cost of living elevated.
Inflation remains broad-based, with key categories sitting well above their historical norms. Major cost pressures are concentrated in housing, where rents and new dwelling costs are seeing solid increases. Essential services and travel also significantly exceed typical levels, with several core index components tracking between 20% and 27.8% above their 10-year averages. Conversely, some relief is emerging in other areas as global supply chain pressures ease, though these declines are heavily offset by sticky domestic services.
State-level inflation shows significant divergence across the country. Tasmania and South Australia recorded the fastest annual price growth at 4.5% and 4.4% respectively, placing intense cost of living pressures on local households. In contrast, New South Wales, Victoria, and the ACT recorded the slowest growth at 3.2%, which is below the national rate. With inflation lingering above target, Australian workers continue to experience negative pressure on real wage growth across all jurisdictions.
Headline CPI (YoY)
3.5%
Above RBA 2-3% target band
Falling
Tasmania CPI (YoY)
4.5%
Fastest growing state
Rising
Victoria CPI (YoY)
3.2%
Slowest growing state
Stable
Highest Component Index
104.7
23.9% above 10-year avg
Rising

Equities & Superannuation

ASX capital growth trails long-term averages as superannuation tracks strongly.
The ASX 200 closed at 9,076 points in August 2026, delivering up 1.1% capital growth over the year. This notably trailed the 10-year average capital growth of 5.3%. Total market capitalisation reached $3.41 trillion, growing 2.5%. Conversely, the superannuation index was a standout, tracking 39.2% above average. Overall, equity capital growth is moderating from recent highs.

The ASX 200 closed at 9,076 points as at August 2026. The All Ordinaries reached 9,271 points. The benchmark delivered up 1.1% capital growth over the year. This compares to average annual capital growth of 5.3%. Total market capitalisation of $3.41 trillion was recorded, which also trailed historical growth trends. The trajectory shows the indices moderating slightly into early September. Importantly, these are price indices measuring capital growth only and they do not include dividend distributions.
Superannuation assets total $0.39 trillion within the measured performance index. This sits up 39.2% compared to the historical average of $0.28 trillion, representing a strong outperformance relative to the broader market. These robust figures reinforce the ongoing significance of Australia's retirement savings pool. Even as headline equities experience below-average capital growth, the sheer scale and structural inflows of this mandated system provide a critical foundation for domestic capital markets.
Recent market sessions have been characterised by nuanced sector rotation, with technology and health care providing support while energy and consumer staples have faced headwinds. Furthermore, the modernised investment mandate for the Future Fund underscores a shifting approach for large institutional capital. Looking ahead, the broader outlook for capital growth will depend heavily on how equities digest these sector-specific dynamics alongside ongoing macroeconomic developments.
ASX 200
9,076
1.1% growth vs 10yr avg 5.3%
Rising
All Ordinaries
9,271
0.3% growth vs 10yr avg 5.3%
Rising
ASX Market Cap
$3.41t
2.5% growth vs 10yr avg 7.3%
Rising
Super Performance
$0.39t
39.2% above $0.28t 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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