Every Australian state except Tasmania experienced a drag to momentum from the housing component of the index. The labour market also became less positive for all states and territories except Victoria and the Northern Territory.
Trade was a highlight. The mining states of Western Australia and Queensland recorded stronger positive contributions as resource prices, export volumes and the $A/$US exchange rate moved in their favour.
In New South Wales and Victoria, which are less commodity intensive but have large service sectors, trade momentum also picked up, suggesting a further boost to tourism and education exports.
There are many factors suggesting ongoing solid growth for the Australian economy: consumer and business confidence, higher building approvals in some commercial segments, an upbeat outlook for private business investment and a solid pipeline of public sector infrastructure.
The tightening of credit market conditions remains a negative factor that together with a poorer outlook for house prices is pulling back demand in this important sector, especially in New South Wales and Victoria.