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Stateometer: NSW continues to outperform

The New South Wales and Victoria economies continued to grow at above trend rates in February, with NSW outperforming. While momentum appears to have eased in the two largest economies, this is not surprising as it follows a strong second half of 2015.

" While momentum appears to have eased in the two largest economies, this is not surprising as it follows a strong second half of 2015."
Kirk Zammit, Economist, ANZ

The ANZ Stateometer, which measures economic performance across the states and territories, continues to highlight the uneven growth across Australia despite those strong showings. 

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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

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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