New South Wales’ economy in the first quarter of 2018 outperformed other regions in Australia, thanks to its housing starts and construction work, according to a report.
Commsec released a report that showed the state’s top performance on five economic indicators. Aside from housing and construction, New South Wales’ retail trade, equipment investment, and jobless rates ranked the best nationwide.
Commsec used eight indicators to evaluate the economic performance of different states and territories in Australia. These comprised business investments, construction activities, economic growth, housing starts, housing finance, jobless rates, population, and retail trade.
The level of housing and construction activity bodes well not just for the economy of New South Wales, but also to businesses. For instance, manufacturing companies may find competitive prices in the fabrication of steel in Tamworth due to higher demand heading into the second quarter.
Based on Australian Industry Group’s Performance of Manufacturing Index for April, the strong demand for manufacturing in New South Wales stems from more civil engineering work, commercial construction, and residential projects. This may continue in the coming months after new orders and production remained stable.
Victoria closely ranked next to New South Wales because of the former’s major improvement in unemployment. The Australian Capital Territory (ACT) ranked third based on housing finance activity that outclassed other regions, while Tasmania’s economy trailed behind due to its strong population growth.
Western Australia landed on the bottom, following a subpar performance on five out of eight indicators. It lagged behind other states and territories on the remaining indicators.
Business in New South Wales will likely be encouraged to spend more on equipment and construction services after the economy started the year on a positive note. This would be favourable to companies that look for competitive pricing, as high demand would likely compel suppliers to provide attractive prices.