How are Australia's states and territories performing?
Commonwealth Securities, also known as CommSec, is Australia's largest discount stock broking firm operated by the Commonwealth Bank of Australia. CommSec produce a rankings report each quarter on all Australian state and territory economies called “State of the States”.
Each jurisdiction is ranked based on current economic activity compared to decade average levels. The report does not identify or rank the best performing economies, instead ranks performance by levels of improvement relative to their respective 10 year average for each indicator.
The report completed in January 2016 measures economic performance by analysing the following eight key areas: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
NSW retain the number one position with ‘dwelling commencements' and ‘housing finance' leading the way due its population growth and demand for accommodation. Top rankings were also achieved with low unemployment figures and equipment investment, however it is still fourth-ranked on construction work done and fifth ranked on economic growth.
STATE BY STATE BREAKDOWN
NSW achieves top ranking on six out of the eight indicators:
- Retail trade: Spending in the September quarter was 17 per cent higher.
- Population growth: At 1.35 per cent with growth still 8.7 per cent above the decade average.
- Housing finance: The number of commitments 22.8 per cent above the long term average.
- Dwelling commencements: New home construction was 72 per cent higher.
- Unemployment: A strong job market in evidence with a 5.2 per cent unemployment rate.
- Equipment investment: Equipment spending up by 5 per cent.
Victoria achieves its highest ranking on housing finance.
Northern Territory achieves its highest ranking on construction work done.
ACT achieves its highest ranking on dwelling starts.
Western Australia achieves its highest ranking on economic growth.
Queensland achieves its highest rankings on retail spending and dwelling starts.
South Australia achieves its highest ranking on equipment investment.
Tasmania achieves its highest ranking on unemployment.
The report added that construction work carried out across the entire country was higher than decade averages; with the Northern Territory leading the way with 117 per cent above average activity levels.