WA still top dog

 

shopping centre,centre,shopping,escalator,mall,plaza,complex,consumer,salesWestern Australia is still the country’s strongest economy, with retail spending a key driver, according to CommSec.

Yet the mining capital’s dominance has been waning slightly, says the bank’s latest quarterly report, State of the States.

The ACT has remained at second place, with the territory displaying strength in population growth and housing, but weakness in retail.

The Northern Territory, Queensland, NSW, and Victoria follow in that order respectively, with little to separate these four players.

South Australia comes it at sixth, with it displaying a weak retail market, followed in last place by Tasmania.

CommSec uses eight indicators for its rankings: economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance, and dwelling commencements.

The report found WA’s main source of strength has been moving away from mining towards the jobs market and housing.

Craig James, CommSec chief economist, said all economies will start seeing a boost now the federal election uncertainty is over.

“While a slowdown in mining investment will affect some regions, this will be offset by a lift in residential building,” he said.

“NSW, Western Australia, Queensland and ACT are expected to benefit most from a lift in home building.”

The breakdown is as follows:

1. WA: strength in retail spending, weakness in dwelling starts

2. ACT: strength in population growth, weakness on retail spending

3. NT: strength in economic growth, weakness in unemployment

4. Qld: strength in business investment, weakness in population growth

5. NSW: strength in job market, weakness in economic growth

6. Victoria: strength in job market, weakness in construction work

7. SA: strength in construction work, weakness in retail spending

8. Tasmania: strength in housing pick-up, various weaknesses.

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