Received

Consumer confidence has recovered some lost ground but remains deeply in negative territory.

The index collated by ANZ and Roy Morgan last week gained 2.3 points to hit 78.1, with the robust labour market and possibility of an extended pause on interest rates potentially feeding into the more upbeat reading.

But the gauge remains well below its monthly average of 111.1 points and has been lodged between a narrow band of 75 to 78.5 for six consecutive weeks.

ANZ economist Adelaide Timbrell said falling real wages due to still-high inflation was likely working to offset any positive momentum in the economy, and keeping a lid on confidence levels.

"The resilient labour market and the beginning of what we think will be an extended pause from the RBA is yet to result in a confidence level above 80, which was achieved even during (COVID-19) Delta lockdowns in 2021," she added.

The different components that make up the index either improved or were unchanged, with "future financial conditions" up five points after a 4.2 point fall the previous week.

A measure of more immediate financial conditions did not budge.

Speaking at a business event in Perth, Prime Minister Anthony Albanese commented on the cost of living pressures faced by households and the unequal pain it was inflicting across the community.

The prime minister said global inflation was the top economic statistic keeping him up at night.

But Mr Albanese also said inflation was moderating in Australia, and the latest forecasts from Treasury were more upbeat than predictions made at the start of the year.

Growing pay packets are also starting to catch up to softening inflation, which will take further pressure off stretched Australians by delivering real wage growth.

Australian Bureau of Statistics data for the June quarter showed wages up 3.6 per cent annually, the strongest growth in more than a decade, albeit falling short of most economists' expectations.

A separate dataset from job marketplace Seek showed advertised salaries rising by 0.4 per cent in July, slightly higher than the rises across April to June.

Over the year to July, salaries posted on the marketplace rose by 4.6 per cent, up from 4.5 per cent in the year to June.

"Advertised salary growth remains solid," Seek senior economist Matt Cowgill said.

"The Fair Work Commission's decision to raise award wages by 5.75 per cent was likely a contributing factor here - but it's notable that the most award-reliant industries, such as hospitality and tourism, didn't see particularly strong growth."

Queensland advertised salaries were up 5.3 per cent over the year, following a growth trend that began in 2021.

The territories are lagging, with 3.7 per cent advertised salary growth in the Australian Capital Territory and 2.5 per cent in the Northern Territory.

The biggest rises by industry were in insurance and superannuation (up 9.2 per cent), community services (6.7 per cent) and trades and services (5.9 per cent).

The slowest was recorded in government (0.9 per cent year-on-year), continuing a trend of sluggish public sector growth.

© AAP 2023

Australian retail sales have come in slightly higher than expected as the Women's World Cup and school holidays fuel an uptick in eating out.

The 0.5 per cent improvement in the Australian Bureau of Statistics numbers for July beat the market consensus of 0.3 per cent and partly reversed the steep fall of 0.8 per cent in June when end-of-financial-year sales fell flat.

For May, the bureau reported a 0.8 per cent lift.

ABS head of retail statistics Ben Dorber said underlying growth in retail turnover was subdued even with the increase in July.

"In trend terms, retail turnover was unchanged in July and up only 1.9 per cent compared to July 2022, despite considerable price growth over the year," Mr Dorber said.

Cafes, restaurants and takeaway food services reported a 1.3 per cent rise, with Mr Dorber linking the spending boost to the FIFA Women's World Cup and school holidays.

Food retailing remained unchanged.

Aside from household goods retailing, which recorded its second consecutive fall, most non-food categories rose in July.

Department stores lifted 3.6 per cent, clothing, footwear and personal accessory retailing improved two per cent and other retailing grew by 0.3 per cent.

AMP Australia economist Diana Mousina said retail spending data was captured in nominal terms and was bolstered by growth in consumer prices.

Given the contribution of still-high inflation, she said consumers were buying less, with the economist estimating a 0.6 per cent fall in volumes in July.

"The weakness in retail volumes is a clear sign that higher interest rates are working to slow spending," Ms Mousina said.

The behaviour of consumers has been flagged as an ongoing source of uncertainty by the Reserve Bank as it lifts interest rates to take some heat out of the economy and push down inflation.

Ms Mousina said the bank would likely stay on hold for the third month in a row.

"Given lower-than-expected June quarter wages growth, the slowing in inflation over recent months and the lift in the unemployment rate to 3.7 per cent, we think the RBA will be comfortable keeping the cash rate on hold at next week's meeting,'' she said.

NAB markets economist Taylor Nugent said growth in retail trade growth was clearly softening but sales were not falling off a cliff.

"The level of retail sales is still 17 percentage points above a pre-pandemic trend," Mr Nugent said.

He said the data was unlikely to shift the needle for the RBA in the short term.

NAB economists expect one last interest rate hike between now and November.

© AAP 2023

Qantas chief executive Alan Joyce says travel for Australians could be made more affordable with two changes to aviation policy.

Mr Joyce told a parliamentary committee on Monday he understood the rising cost of living was a serious problem.

"Many people are doing it tough," he said.

He called for a sustainable aviation fuel (SAF) industry which would reduce emissions and be a huge opportunity for jobs and economic growth.

"It would reduce the impact of big swings in oil prices and and would help bridge a significant gap in Australia's energy independence," he said.

Sustainable aviation fuel was the "most significant tool airlines have to decarbonise".

The outgoing airline boss said increased airport pricing would prove a "major cost pressure" for the Qantas Group.

"The regulatory regime that governs the relationship between airports and airlines isn't working," he told the hearing.

"Dedicated pricing principles drafted to solve this problem have never been formally enshrined, and are typically ignored by airports."

As the government prepares to release its aviation white paper in 2024, Mr Joyce said policies were needed help with efficient resolution of commercial disputes between airlines and airports.

"Australia's monopoly airports are some of the most profitable in the world and ultimately, it's the passenger who pays," he said.

Qantas posted a record underlying profit of $2.47 billion for the past financial year, after it recorded a loss of almost $2 billion the year before.

Competition in the airline industry is expected to feature during questioning, after a request from Qatar Airways to the federal government for additional flights to Australia was rejected.

Despite both airlines being members of the Oneworld alliance, Qantas opposed the plan for the extra Qatar flights.

An inquiry last week was told Qantas was deliberately cancelling flights between cities to stop competition with other airlines.

© AAP 2023