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NSW still best performer in State of the States

NSW still best performer in State of the States

NSW continues to top the CommSec State of the States report, while Western Australia lags, with annual growth there generally below national averages.

How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; business investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.

The State of the States report also includes a section comparing annual growth rates for the eight key indicators across the states and territories as well as Australia as a whole.

The latest data shows Australia’s economies to be in good shape but with some differences in relative performance. NSW remains on top while Victoria is not far behind, ahead of the ACT. Then there is a gap to South Australia, Tasmania, Queensland and Northern Territory, then another gap to Western Australia.

NSW has retained the position as the best performing economy, at or near the top of all indicators.

Victoria holds second spot on the economic performance rankings with strength provided by high population growth, boosting housing demand.

The ACT retains third spot on the performance rankings but there has been a softening in the job market.

South Australia has lifted from sixth to fourth spot, just ahead of Tasmania and Queensland.

Northern Territory remains in seventh position.

Western Australia continues to lag other economies and annual growth rates remain below national averages on seven of eight indicators surveyed.

Looking ahead

NSW remains on top of the economic performance rankings but Victoria has narrowed the gap. Both states have relatively high population growth, underpinning home building and retail spending.

Victoria remains in second on the performance rankings and has lifted in four of the eight indicators as well as out-performing all other economies on annual growth rates.

The ACT remains in third spot but it has lost economic momentum with the jobless rate edging higher while experiencing a slowdown in new home building.

NSW, Victoria and ACT still represent the top-tier of economies. There is still little to separate South Australia, Tasmania, Queensland, and Northern Territory.

South Australia lifts from sixth to fourth with improvement in the job market serving to boost retail spending and new home starts.

Tasmania slips from fourth spot to fifth with some softening in the relative position on retail spending and overall construction work done.

Queensland has slipped to sixth, but as noted, there is little to separate it from Tasmania and South Australia. Queensland employment is now the strongest in the nation. The state is also still being buoyed by strong export activity.

The Northern Territory remains in seventh spot. The outlook for the Northern Territory is constrained by weak population growth.

Western Australia is benefitting from stronger employment growth – the 2.9% annual growth rate now the best in 4½ years. The stronger job market has potential to lift retail and housing activity, according to CommSec Chief Economist Craig James.

Produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither Commonwealth Bank of Australia ABN 48 123 123 124 nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. This article is intended to provide general information only and has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice. In the case of certain securities Commonwealth Bank of Australia is or may be the only market maker. This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 a wholly owned but not guaranteed subsidiary of Commonwealth Bank of Australia. This report is approved and distributed in the UK by Commonwealth Bank of Australia incorporated in Australia with limited liability. Registered in England No. BR250 and regulated in the UK by the Financial Conduct Authority (FCA). This report does not purport to be a complete statement or summary. For the purpose of the FCA rules, this report and related services are not intended for private customers and are not available to them. Commonwealth Bank of Australia and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report.