New South Wales’ economy in the third quarter of 2017 continues to dominate the regional economies of Australia, although Victoria stays close behind, according to CommSec’s State of the States Report.
The report showed that the country’s domestic economies remain ‘in good shape’, yet there have been certain differences in terms of performance, said CommSec chief economist Craig James.
Form Direct and other experts explain that concrete construction supplies became more in demand during the latest quarter, due to the ‘favourable population growth’ that drives a stronger home building activity and higher retail spending, James said.
In New South Wales, for instance, people have been spending 16.9% above 10-year average levels. The state’s low jobless rate also proved to be attractive.
Victoria, however, outperformed the national average on each of the report’s economic performance indicators. This comprised economic development, retail spending, business investment, unemployment, completed construction work, population growth, home financing, and dwelling starts. On the contrary, Western Australia’s annual growth rates fell below the national average in all but one of the indicators.
The Australian Capital Territory (ACT) ranked third best on economic performance, as it topped the housing finance category. Its retail spending and economic growth ranked third best as well, but its employment market has begun to slow down, according to report.
South Australia improved its position to fourth from sixth in the rankings, due to its stable housing starts, business investment and unemployment. Western Australia ranked at the bottom largely because of the end of a mining construction boom. Still, James said that the state’s job market might uplift retail spending and housing activity. Its employment sector has recorded the strongest growth in nearly five years.
The strength of Australia’s domestic economies partly depends on housing construction, which bodes well for suppliers as it means more business for them.