The ANZ Stateometer is a set of composite indices that 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.
The indices can be thought of as measuring annual growth in economic performance, given we calculated the common trend across annual growth in the underlying indicators. This means that an increase in the index equates to faster growth, while a decrease in the index equates to slower growth.
Each index is expressed as a deviation from its long-run average. This means that a positive reading indicates economic performance is above trend, while a negative reading indicates that performance is below trend.
We smooth each index by reporting the three-month average of each series.
The ANZ Stateometer is correlated with broader measures of economic activity, like state final demand, but wasn’t designed to forecast these series.