Australian Equity Strategy: UBS Evidence Lab: Q2 survey shows still very strong spending intentions despite Budget hit

Research evidence excerpt

Australian Equity Strategy: UBS Evidence Lab: Q2 survey shows still very strong spending intentions despite Budget hit

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Australian Equity Strategy Equity Strategy

AustraliaUBS Evidence Lab: Q2 survey shows still very

strong spending intentions despite Budget hit Richard Schellbach

Strategist

richard.schellbach@ubs.com

+61-2-9324 2277

Q2-2026 survey shows upward momentum in spending growth still remains Lily Huang

UBS Evidence Lab surveyed ~1,000 adults across Australia between the 11th to the Associate Strategist

22nd of May 2026 in the 28th quarterly consumer survey. On balance, these Q2-2026 lily.huang@ubs.com

+61-2-9324 2656

results showed a surprisingly strong set of readings, and no obvious signs of a cooling

economy.

Broad based spending increase reflects inflationary environment

Versus the significant jolt we saw in the Q1 survey stemming from the Iran conflict, Q2

responses showed somewhat of a stabilisation in spending intentions (figure 3). Overall,

spending still remains very high versus survey history, with consumers telling us that

spend through almost all categories is meaningfully higher than it was 12-months ago.

Rent and utilities are however showing softening, which would signal some 'cost-of-

living' relief.

Income growth strong such that both spending and savings up also

Petrol / fuel costs are now cited as the most obvious 'cost-of-living' pain point, even

surpassing both food and utilities (figure 28). The strong spending intentions in the face

of these headwinds comes from a reported surge upwards in total household income

(figures 5 & 6). The growth in income expectations has been so strong that respondents