CommSec rates Tasmanian economy best as election showdown looms

The latest CommSec State of the States report had Tasmania on top for the fifth consecutive quarter.

The state was top or equal top in each of those quarters, with the ACT currently running second.

The report rates state and territory economies against their own "normal" performances, as measured by 10-year averages.

They are ranked on eight economic indicators, being economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and housing starts.

Tasmania's rankings were:

CommSec said Tasmania's housing starts were 35.3 per cent above the state's decade average in the December quarter.

Western Australia, in second place for relative performance on housing starts, was up by 18.2 per cent.

"(Retail) spending in Tasmania is 19.1 per cent above normal levels, or the decade average," the report said.

IN OTHER NEWS:

Tasmanian spending on new plant and equipment was 27.8 per cent above the decade average, suggesting businesses were "tooling up" for growth.

Tasmania's unemployment rate was 9.3 per cent below its decade average in March, with Australian Bureau of Statistics figures showing the state was close to an all-time jobs record as the recovery from the coronavirus crash continued.

Construction work done was 13.4 per cent above Tasmania's "normal".

CommSec said Tasmania consolidated top spot during the quarter.

"Over the quarter, Tasmania lost one place on retail trade, but gained one place on both housing finance and relative economic growth," it said.

Premier Peter Gutwein noted the report said there was little change expected at the top of the rankings for the next few quarters and that was "a vindication of our strong economic management and plan to secure Tasmania's future".

"Now more than ever we need a strong, stable majority government to keep our state powering ahead.

"Minority government leads to lower confidence, less investment and job losses."

Meanwhile, CommSec said the ABS wage price index - measuring wages paid for the same work - increased by 1.5 per cent in Tasmania in 2020, while Hobart inflation grew by 0.8 per cent.

New vehicle sales were below "normal" in all states and territories.