The wage price index rose by 0.7 per cent in the March quarter and by 2.6 per cent over the year. The year-ended pace of wage growth was 1 percentage point below its long-run average and around the slowest pace in the 17-year history of this series, according to the June monetary policy meeting minutes of the Reserve Bank of Australia.
However, household consumption spending had continued to increase, with growth in the volume of retail sales in the March quarter around the same strong pace as in the December quarter. At the same time, a range of indicators of housing construction confirmed that a significant recovery was underway in this sector. Forward-looking indicators of new dwelling investment were at high levels relative to recent years, although building approvals had declined in recent months.
Source: RBA