NSW still on top, WA falls to seventh: CommSec's State of the States July 2016
New South Wales has the best performing economy nationwide according to the State of States July 2016 report from CommSec Research.
The report, which compares indicators against decade averages, found both NSW and Victoria, which came in second, are keeping a lead of other states and territories.
The ACT economy improved over the quarter and held onto third spot - it is top ranked on housing finance and third ranked on economic growth, unemployment and population growth.
The report said while the Northern Territory economy has held onto fourth place, there is now little separating South Australia in fifth (previously seventh) from the ‘top end’ economy.
"The Queensland economy has moved down one rung from fifth to sixth," it said.
"NSW has retained its top rankings on population growth, equipment investment, retail trade, and dwelling starts and added economic growth. But NSW drifted to second spot on unemployment. NSW improved to third ranked on construction work and drifted to third on housing finance (previously second).
"Victoria is ranked second on a number of indicators (economic growth, population growth, retail trade, business investment, construction work and housing finance). Victoria has moved from second ranked to fourth ranked on unemployment.
"The Northern Territory is losing momentum, and as key resource projects are completed, activity levels will slow further unless a lift in investment takes place. Slow population growth, weak demand for housing loans and a sharp fall in equipment investment will constrain economic momentum.
"The South Australian job market has improved in the past year and in particular the past quarter. If the positive trend continues, then there is scope for an improvement in retail spending.
"Queensland has slipped down the rankings to just above Western Australia, and Tasmania. Encouragingly, the lower Australian dollar will support agricultural exports and more importantly the tourism sector in coming months.
"Western Australia continues to slip in the performance rankings, having moved from top spot (July 2014) to seventh in two years. Slower population growth and higher unemployment will constrain activity in the housing market."
The report also noted in ACT, Victoria, NSW, South Australia and Queensland trend housing finance commitments are above decade averages.