Consumer confidence has hit the lowest level since 2023, while wages hold steady and the job market remains strong, according to surveys by major banks.
The ANZ-Roy Morgan Australian Consumer Confidence index showed the sharpest fall in household financial confidence for the year ahead since the index began.
ANZ Economist Madeline Dunk said in a statement that rising geopolitical uncertainty was likely to have played a role, .
“Most sub-indices declined, with overall consumer confidence falling 3.7 points to 73.4 points,” Ms Dunk said.
Confidence in financial conditions for the next 12 months decreased 6.6 points, short-term (12- months) economic confidence fell 6.4 points, and the ‘time to buy a major household item’ subindex declined 4.5 points.
Meanwhile, the latest Commonwealth Bank Wage and Labour insights reinforce expectations of a “wait and see’ approach from the RBA on interest rates, amid a tight but stable labour market.
Wages rose 0.7 percent over the three months to February 2026, with annual growth steady at 3.1 percent and 21,000 jobs added in February.
Employment growth is tracking around pre-pandemic rates, with unemployment steady at a low 4.1 percent.
Queensland’s annual wages growth was 3.4 percent.
WA recorded the fastest annual wages growth at 3.8 percent, and the NT had the slowest at 2.7 percent.
CommBank Head of Australian Economics Belinda Allen said the data suggested wages had yet to respond to the tightening in labour market conditions through late 2025 and early 2026.
“Our data is not yet showing any response to the tightening in labour market conditions, but there are often lags from when the labour market tightens to wages growth picking up,” Ms Allen said in a statement.
