How are Australia’s states and territories performing?
Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
Just as the Reserve Bank uses long-term averages to determine the level of “normal” interest rates; CommSec have done the same with the economic indicators.
For each state and territory, latest readings for the key indicators were compared with decade averages – that is, against the “normal” performance.
Here’s a summary of their latest State of Our States report.
New South Wales
Strength: Population Growth
Weakness: Economic Growth
Insights into NSW
NSW has retained its top rankings on population growth, retail trade and dwelling starts but now adds housing finance to the list.
NSW is still second placed on unemployment and is also second strongest on equipment investment.
The other rankings are: construction work (fourth) and economic growth (fifth).
Strength: Dwelling Starts
Weakness: Equipment spending
Insights into Victoria
Victoria has consolidated second spot on the economic performance rankings.
Victoria’s main strengths are population growth, housing finance and dwelling starts (second ranked on each indicator).
Strength: Equipment Spending
Weakness: Population Growth
Insights into NT
Northern Territory is top ranked on economic growth, business investment and construction work done.
But the ‘top end’ economy is last ranked on population growth, housing finance and dwelling starts.
Strength: Economic Growth
Insights into WA
Western Australia has is second on retail trade, economic growth and construction work, but higher unemployment (eighth ranked) has impacted housing activity.
Strength: Retail Spending
Weakness: Construction Work
Insights into QLD
Queensland retains fifth position on the economic performance table but it is clear that it is now in a third grouping of economies with the ACT, South Australia and Tasmania.
Australian Capital Territory
Strength: Housing Finance
Insights into ACT
The ACT economy has retained sixth position on economic performance.
The territory ranks third on economic growth and housing finance but is seventh ranked on three indicators.
Strength: Population Growth
Weakness: Dwelling Starts
Insights into South Australia
South Australia has held seventh spot on the economic performance rankings but Tasmania is showing better momentum.
South Australia does best on population growth and equipment investment (both third ranked) but is seventh ranked on three indicators.
Weakness: Retail Spending
Insights into TAS
Tasmania remains at the bottom of the Australian economic performance table.
But importantly Tasmania is now top ranked on unemployment and third ranked for dwelling commencements.