Western Australia leads national performance for the first time in a decade

Last quarter Commsec reported that Western Australia was primed to take over from South Australia in first place. This quarter, Western Australia now leads the national performance rankings for the first time in a decade, ranking first on three of the eight indicators.

In a closely fought contest, South Australia slips to second spot.

The big mover is Queensland, which jumps up to third from fifth place. Victoria drops from fourth from third place, and Tasmania edges up slightly to fifth spot.

Measuring annual growth rates of the eight economic indicators, Western Australia is now alone in first spot. Queensland is second, the Northern Territory is third and the ACT is fourth. Tasmania stays fifth ahead of South Australia in sixth spot, followed by Victoria and NSW in seventh and eighth spots, respectively.

1. Western Australia leads on ‘real’ retail spending

“Western Australia leads the retail rankings ahead of the ACT and Queensland” – Commsec.

Despite the rising cost of living and higher borrowing costs, retail spending remained above the long-term average in all states and territories in the June quarter.

Western Australia has moved up from third to the first position, with real spending 10.5 per cent higher in the June quarter 2024 on its decade-average levels.

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2. Western Australia has the strongest job market

“With unemployment at 29.5 per cent below its decade-average level, Western Australia has the strongest job market” – Commsec

Looking at unemployment rates across state and territory economies, comparing the rates with the decade average, Western Australia now has the strongest job market. Trend unemployment in Western Australia was at 3.7 per cent in September 2024, 29.5 per cent below the decade-average level.

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3. Western Australia leads relative population growth

“Western Australia has both the highest relative, and absolute population growth” – Commsec

Population growth is an important driver of the broader economy, especially retail spending and housing demand. Western Australia is the strongest on relative population growth, with its 3.11% annual population growth rate 98.9 per cent above the decade average for the year to the March quarter 2024.

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Other indicators – Honorable WA mentions

WA is in the number 2 spot for owner occupier home lending, up 36.2%
WA saw the fastest annual lift in home prices, up 24.1%
WA leads on new car sales, up 25% on the decade average

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Given its strong economic performance, WA is poised to consolidate its position further on the leaderboard. Talk to one of our strategists today about Perth market opportunities and investing in Perth

About Commsec State of the States Report

Each quarter CommSec attempts to find out which state or territory is Australia’s economic leader. Now in its 16th year, the report also includes a section comparing annual growth rates for the eight key indicators across the states and territories as well as Australia as a whole, enabling comparisons in terms of economic momentum.

Source: Commsec State of the States October 2024, Edition 61

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