Western Australia recorded the strongest job market and population growth nationally after the state recently surpassed 3 million people, according to CommSec’s latest report.
For the first time in a decade WA notched first ranking in the report which measures the economic performance of states and territories on the latest data compared to decade averages.
The state led population growth, retail spending and unemployment but fell behind on construction work and new home starts, although in terms on annual change WA led the pack on the latter.
According to the CommSec report, the digital broking arm of Commonwealth Bank, all states and territories recorded above-average retail spending despite rising cost of living and borrowing costs.
WA’s retail spending was 10.5 per cent higher in the last quarter compared to its decade-average, with the Australian Capital Territory not far behind at 10.1 per cent above.
The state’s jobless rate of 3.7 per cent in September was 29.5 per cent below the decade-average level and its annual population growth rate of 3.11 per cent was 98.9 per cent above the decade average.
Perth had the highest annual inflation rate in the June quarter at 4.6 per cent, followed by Adelaide and Sydney at 4.5 per cent and 3.8 per cent, respectively.
WA also had the fastest annual lift in home prices, up 24.1 per cent, followed by South Australia and Queensland, up 14.8 and 14.5 per cent respectively.
“Western Australia’s robust economic fundamentals, especially its low unemployment and strong population growth has fuelled nation-leading consumer spending, pushing the state to the top of the leaderboard for the first time in a decade,” chief CommSec economist Ryan Felsman said.
“WA is well positioned for sustained future performance; however, the competition remains intense, particularly among the top three states with Queensland moving quickly up the rankings.”
Nationwide, Mr Feldman said the extended period of elevated interest rates to counter persistent inflation was pressuring consumers and slowing economic momentum.
“The path forward will largely depend on the ongoing strength of the labour market, trajectory for monetary policy and China’s economic recovery,” he said.
