CBA report shows states’ economies are cooling, but for how long?
Victoria has taken the lead in economic performance in the Commonwealth Bank’s regular state of the states report but the result shows a neck and neck race between the eastern states.
Houses are seen in the inner-city suburb of Paddington in Brisbane, (AAP Image/Jono Searle)
Queensland has been ranked fourth in overall economic health, but its economic growth (7.5 per cent above a four year average) was only marginally behind Victoria (7.7 per cent), and NSW (7.6 per cent).
Queensland was also topping the ladder for home loans with the value of home loans up 15 per cent on the long term average, but its weakness was in equipment lending, which is a sign of a lack of confidence in the business sector.
The housing finance performance was seen as a leading indicator for real estate activity and housing construction and a “useful indicator” for the finance sector.
Despite Queensland performance in housing finance, loans were below last year’s level. In Queensland the fall was 9.7 per cent. Dwelling starts in Queensland were down almost 10 per cent against the decade average.
The bank said the economies of all the states and territories were slowing in response to higher borrowing costs and price pressures.
The nation’s strongest job market was in South Australia but every state showed significant falls in unemployment with Queensland down 31 per cent against the decade average.
“There is little to separate the top six states and territories in terms of economic performance,” the bank said.
It said while economies were cooling the indicators pointed to stronger dwelling construction in 2024.
