Each quarter CommSec attempts to determine the ‘state of the states’ 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 decade averages to determine the level of “normal” interest rates; we 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.
For the past two quarterly reports, we judged that Australia’s multi-speed economy could more accurately be described as ‘Western Australia first and daylight second’. And we see no reason to change that judgement but Northern Territory is coming up fast.
Western Australia comes out top on four of the eight criteria, but has slipped over the past three months after coming out on top in six criteria last report. Western Australia is still first or second on seven of the eight indicators, clearly well ahead of other state or territory economies.
The Northern Territory has passed the ACT to take second spot. The other big improver is NSW, now ranked alongside Victoria and Queensland. Then there is a sizeable break to South Australia and then another sizeable gap to Tasmania.
To read the State of the States report, click here.
