Next up is Queensland and Tasmania. These economies are growing at around, or a little below, trend rates. A period of above-trend growth, however, would be desirable in these states to run-down spare capacity.
The Stateometer finds the South Australia and the Australian Capital Territory economies in recovery, though headwinds appear to be mounting for the former. Headwinds for the SA economy in parts of the manufacturing space could prove difficult to navigate for some time.
Last on the performance list is growth in the Western Australia and the Northern Territory, which remain weak overall as their resources sectors continue to adjust.
The ANZ Stateometer is an indicator that synthesises a large volume of monthly data to give our clients a one-stop-shop for current state and territory economic conditions.
ANZ Research has included 16 economic indicators that cover labour market conditions, household and business activity and prices and analysed them using a statistical technique called principal component analysis. PCA shows common trends in the data, and in this case, the underlying pulse of domestic economic activity for each state and territory.
Kirk Zammit is an economist at ANZ