Victoria is Australia’s Top State Economy

Victoria has taken top spot of CommSec's State of the States report for a second consecutive quarter thanks to strong construction activity and the lowest jobless rate in a decade.

CommSec’s quarterly State of the States report ranks Australia’s states and territories according to eight economic indicators.

Victoria placed ahead of NSW for only the second time since the reports inception.

The report analyses the current rates of economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements to score each state.

Victoria topped the national average rates in three of the eight indicators.

Related: NSW Is No Longer Australia’s Top State Economy

Economic Growth

Last quarter Victoria topped the economic performance rankings for the first time in the 9 year history of CommSec surveys.

Victoria remains just ahead of NSW, adding $408.2 billon to its economy over the quarter.

Both states maintaining broad-based economic strength, underpinned by population growth, construction and investment activity.

Victoria’s relative economic growth was the strongest in Australia, with economic activity 26.7 per cent above its decade-­average level of output.

Victoria exceeded the national average on all eight indicators used in the analysis while Tasmania led on five and NSW and the ACT on four.

Within Melbourne population growth is requiring record levels of infrastructure spending.

Housing Finance

There has been just one change in housing finance rankings, with Tasmania moving past Victoria into second position.

The ACT remained in top spot with 1,090 commitments up by 19.2 per cent on the decade average.

In six of the states and territories trend housing finance commitments are above decade averages.

But in all but one states or territory, trend housing finance is below year-ago levels.

Dwelling Starts

NSW recaptured the top spot for dwelling starts from Victoria with homebuilding strongest in Sydney due to above “normal” population growth.

NSW commenced 18,619 new dwellings, up 54.9 per cent on the decade average.

Four of the eight states and territories posted a lift in trend starts in the June quarter after the majority reported softer starts in the March quarter.

Dwelling starts for the year in Tasmania are up 29.1 per cent on a year ago to a 7-year high.

At the other end of the scale, starts over the year in the Northern Territory are down 29.3 per cent on the previous year.

Construction

CommSec reported that in five of the states and territories, construction work in the June quarter was higher than the decade average.

Victoria retained top spot with construction work done almost 39 per cent above its decade average, indicating continued high levels of activity of approvals and new builds within the construction sector.

In NSW, Victoria and South Australia construction work done was at record highs in the June quarter.

Victoria recorded $13.79 billion in construction work completed, NSW $15.78 billion and SA $3.2 billion.