Following after WA were Victoria, Queensland, the Australian Capital Territory and South Australia, leaving Tasmania to bring up the rear as Australia’s worst performing economy again – with almost no growth.
The analysis ranks each jurisdiction across a number of measures based on current economic activity across decade average levels.
The NT was ranked first in five of the eight indicators: economic growth (up 37%); equipment investment; unemployment (down 14%); construction spending (up 47%); and dwelling starts, although population growth was down about 45% on decade-average levels.
NT Acting Treasurer Peter Chandler said the result was excellent news for the territory, which has benefited from the recent gas project investment, but he said the NT was about more than one single industry.
“To have our economy recognised as leading the nation is satisfying, but we want 2015 to bring even further economic good news, particularly in areas such as residential construction as our massive land release program starts to simulate building activity,” he said.
NSW rose to the top of the table for the first time since mid-2011. The state is enjoying the strongest population growth and housing construction, plus the second best retail trade, business investment and unemployment, CommSec said.
NSW is playing catch-up after years of under-building, where demand for homes exceeded supply.
Chandler claimed the NT was ranked first in terms of dwelling commencements.
“In the September 2014 quarter dwelling commencements in the Territory were 61% above the decade average level,” he said.
WA was ranked second, with construction work done in the September quarter 2014 up 34% on decade average levels.
However, recent research from the Housing Industry Association shows the construction boom in the Top End appears to have peaked, and is moving into the decline phase, as jobs are shed from the giant Ichthys LNG project.
It’s a similar story in Queensland, where the major LNG projects are also moving into the production phase.
In the NT the sector’s has also been hit by the completion of big projects such as the $500 million Darwin Correctional Precinct.
HIA data shows that since 2010/11 the value of building and engineering construction across the NT doubled from $2.16 billion to $4.867 billion in 2013/14, but with the major projects declining and nothing to take their place work is starting to dry up.
Data from the Australian Construction Industry Forum indicates that homebuilding activity will reduce to around $3.2 billion by 2017/18, although figures compiled by Deloitte suggest the value of private builds will return to 2011 levels.
