CommSec: Housing finance delivers ACT the second-strongest economy in Australia
The ACT economy is on fire – at least according to Commonwealth Bank.
In today’s State of the States report, the national capital has pushed itself into second place among all states and territories. With a high rating for housing finance and unemployment at 3.5 %, the ACT edged in front of Victoria, but remains a fair way behind NSW.
The ratings are developed through analysis of eight key indicators (ACT ranking in bold):
- economic growth (3)
- retail spending (3)
- business investment (2)
- unemployment (4)
- construction work done (4)
- population growth (2)
- housing finance (1), and
- dwelling commencements (2).
Wage growth within the ACT was rated the worst in the country, however retail trade was the strongest in the nation.
The Territory was ranked second for business investment, which is an interesting position to hold considering last week’s proposal to move Federal Public Service agencies away from Canberra and into more regional areas. That business confidence could easily be eroded by an attack on the Canberra’s largest single employer.
The overall picture is one of strength for the nation. Certainly, this is a bit of good news for the government ahead of next week’s budget. The Treasurer will be looking for any available signs that the economy is picking up steam.