Consumer confidence is lifting

Australia’s economy grew 1.3% over FY24/25, marking the lowest annual rate since 1992 (outside the pandemic years). After a subdued start, momentum built through the first half of 2025, with GDP rising 0.6% in Q2 as households began to spend again. Real wage growth, tax cuts, and two rate reductions in February and May lifted confidence, pushing consumption up 0.89%: the strongest in more than two years.

Population growth added further demand, while lower interest rates encouraged a modest 0.35% rise in dwelling investment. Business investment, however, lagged as productivity slowed and major projects wound down. Public spending growth also eased as governments tightened budgets