CommSec released its quarterly State of the State report this morning and NSW was on top for the second quarter in a row. This time it was also joined by the Northern Territory.
NSW – 1
Northern Territory – 1
Western Australia – 3
Victoria – 4
Queensland – 5
ACT – 6
South Australia – 7
Tasmania – 8
Western Australia is gradually slipping down the ladder as the mining boom slows down there. It is now in third place, after being first in July 2014.
“There will always be a changing of the guard in terms of economic performance as relative economic growth drivers variably strengthen or fade. The end of the mining construction boom should lead to more balanced growth in Western Australia,” CommSec chief economist Craig James said in the report.
NSW retains its top position due to the recent improvement in home construction as a response to its growing population. CommSec says it should continue to be well supported by home construction and infrastructure over 2015.
The other top placeholder – Northern Territory – has top ranks for five of the eight economic indicators measured in the report but slower population growth is dampening home building activity.
“Attracting labour to the ‘top end’ remains a constraint on growth,” the report said.
Momentum is slowing in Victoria and while construction work and equipment spending is relatively strong in Queensland it is still suffering from a soft job market.
Although its trend unemployment rate of 4.9% is not that bad compared to the national rate of 6.1%, for the ACT it is over 41% higher than its decade average rate level, which puts it at the bottom of the table on that measure.
South Australia still endures poor retail spending and home building but hopefully bottom-ranked Tasmania will benefit from a lift in population growth and construction.
To compile the rankings CommSec looks at the latest readings of key economic indicators and compares them to decade averages or ‘normal’ performances.
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