The economy of New South Wales during the second quarter remained on top of other states in Australia based on several factors, according to the CommSec’s latest State of the States report.
Residential building activity served as the bright spot in the state’s economy, particularly for home-related construction work such as an outdoor gazebo or property renovations from companies such as Cedar Shed. Aside from housing, retail trading in the state also ranked first nationwide.
CommSec chief economist Craig James believes that Australia’s overall economy has been strong, although most of the growth momentum has occurred in New South Wales, Victoria, and the Australian Capital Territory.
The quarterly report of eight states and territories gauged the economic performance of several states based on different factors. Other than retail spending and housing, it used economic development, business investments, jobless figures, construction activity, and population growth.
In terms of retail spending, people in New South Wales allotted 16.1 percent more of their income between January and March compared to the 10-year average. Residential construction starts also increased 62 percent higher than the 10-year average.
Western Australia’s economic performance contrasted New South Wales’ figures for the second quarter of 2017, as it landed on the bottom of the list. The state’s weaker economy takes places as a manifestation of a continually declining mining industry. However, its jobless numbers dropped in the last three months.
On the other hand, the Northern Territory emerged with the most number of completed construction work, best unemployment rate, and economic growth. However, it ranked seventh due to weak population growth, housing finance and housing starts.
New South Wales’ strong housing activity, low jobless rate and population growth among other factors helped in keeping Australia’s economy afloat. These economic indicators show that living in the state has certain benefits to residents and businesses alike.