While Reserve Bank chief Philip Lowe believes the "animal spirits" are returning to the business community in the global pick-up in economic growth, the same can't be said about Australian consumers.
New figures show consumer confidence eased 0.4 per cent in the past week despite data showing the jobless rate dropping to its lowest in more than four years.
The index for households' confidence in present financial conditions dropped 8.1 per cent, unwinding most of the 9.4 per cent jump in the previous week.
JP Morgan chief economist Sally Auld says the results underscore the vulnerability of the domestic consumption outlook for coming quarters.
In the minutes of its June board meeting released on Tuesday, the central bank concedes wage growth is likely to remain subdued for some time.
Dr Lowe told a conference on Monday wages growth was in "crisis".
Treasurer Scott Morrison agrees with the governor that where a business is returning good profits, its staff should benefit from wage rises.
"No one gets a pay rise in a business that is going backwards and no one gets a job in a business that is closed," he told ABC radio on Tuesday.
The treasurer argued wages growth would come from businesses that were growing.
That's why the government was pursuing company tax cuts as well as implementing trade plans and boosting spending for infrastructure and the defence industry.
"All of these things we are implementing are all about seeing our companies grow," Mr Morrison said.
Separately, official figures showed city property prices rose 10.2 per cent in the year to March, led by a 14.4 per cent jump in Sydney and a 13.4 per cent in Melbourne.
However Housing Industry Association senior economist Shane Garrett said since March there have been signs of slowing price growth following the introduction of additional restrictions by the prudential watchdog and increased barriers to foreign investor participation imposed at both the federal and state level.
Global credit rating agency Standard & Poor's is keeping a watchful eye on developments in Australia's housing market.
Craig Michaels, S&P's director of sovereign ratings told a briefing a collapse in prices would not only have a direct impact on the banking sector and could grow into a broader economic slowdown if it weighs heavily on consumption.
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