Monthly Economic Update

Australia’s economic landscape this month reflects a market adjusting to tighter financial conditions, but with pockets of resilience. Inflation continues to ease gradually, supported by softer goods prices and stabilising supply chains, while services inflation remains sticky — particularly in housing, insurance and essential services.

The RBA’s stance remains data‑dependent. Markets are pricing a prolonged hold, with rate cuts pushed further out as policymakers wait for clearer evidence of sustained disinflation. Employment remains stable, though job ads and hiring intentions have softened, signalling a slower pace ahead.

Consumer sentiment is cautious. Households are prioritising essentials, delaying discretionary spending and responding to higher living costs with more conservative financial behaviour. Business conditions remain mixed: construction and logistics show pressure, while professional services and technology sectors hold steady.

Overall, the economic environment remains one of moderation, caution and gradual stabilisation, with key indicators suggesting a slow but steady path toward balance.