Stateometer: greater momentum

Economic activity in all states and territories accelerated in the first quarter of calendar 2021, according to the ANZ Stateometer, with all bar Victoria recording above-trend growth.

" WA was the outperformer of the index, as the state’s economic activity accelerated further above trend in the three months to March.”

Notably, the ANZ Stateometer showed strong housing momentum across all states and territories, fuelled by low interest rates and fiscal support.

In New South Wales, solid domestic spending has been enough to boost business confidence but there is still a gap left by tourists. Victoria’s momentum is much stronger than NSW’s as it is still in a catch-up phase from the state’s second, extended, lockdown.

Western Australia and the Northern Territory are doing particularly well on their housing indicators but the mining mix in WA is much more in sync with global demand, helping the state’s critical trade component far more than NT.

Tasmania’s labour market has accelerated and the consumer component is likely to improve in the coming months. In contrast, the labour market has deteriorated in the ACT, in line with falling public service employment.

South Australia is on the up with positive net interstate migration and improving household spend. Queensland is also seeing increasing net interstate arrivals, underpinning broadening strength.


WA was the outperformer of the index as the state’s economic activity accelerated further above trend in the three months to March. The state’s five-day lockdown from earlier in the quarter does not appear to have held its economy back.

In NSW, the index reached its highest level since 2017. The consumer sector was the biggest growth driver, followed closely by the housing sector. The tourism-dampened trade segment and the labour market still lag despite some improvement.

Victoria’s economic activity accelerated quickly even in the face of the snap lockdown of February.  The housing market and business activity improved, adding to momentum. The trade and labour-market segments remain below the neutral level.

The ANZ Stateometer is a set of composite indices which measure economic performance across Australia’s states and territories.

For each jurisdiction, the index extracts the common trend across multiple indicators (between 24 and 32, depending on data available in the jurisdiction). The economic indicators are monthly data series and cover the consumer, business, housing, labour and trade sectors.

Developments across this diverse country are rarely uniform and we hope these geographically specific indices help you to see through the haze of state by state data and more intuitively piece together the state of the national economy.

Bansi Madhavani & Catherine Birch are Senior Economists and Adelaide Timbrell 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.

editor's picks

25 Feb 2021

Stateometer: disparities in economic recovery

Bansi Madhavani, Catherine Birch & Adelaide Timbrell | Senior Economists and Economist, ANZ

Australia’s states and territories continue to rebuild from recession through the final quarter of 2020 but restrictions still pose risks.

12 May 2021

The budget in pictures

Adelaide Timbrell & Hayden Dimes | Economists, ANZ

See all the key announcements from the 2021-2022 Australian Federal Budget in this infographic.

07 May 2021

IN CHARTS: spending stable so far in post-JobKeeper economy

Adelaide Timbrell & David Plank | Economist & Head of Aus Economics, ANZ

Spending across Australia’s economy remained stable even after the JobKeeper wage subsidy ended.