According to ANZ's Stateometer Queensland has shown the greatest improvement over the September quarter, with the annual pace of growth rising nearer to its trend rate. Queensland is alos showing the second fastest pace of employment growth behind NSW.

ECONOMIC REBALANCING BROADENS TO QUEENSLAND

The rebalancing of the national economy continues with a solid pick-up in the annual pace of economic activity in Queensland.  As the third largest economy in Australia, signs of economic momentum are encouraging, and lend further support to signs that the non-mining sectors are picking up.

The decline in mining investment in Queensland has led to a sharp contraction in state final demand. While significant, this is perhaps not representative of activity in the broader economy, which has picked up noticeably over the year. The state’s monthly data flow picked up across household, business and labour force indicators. 

SERVICES LIFTING ECONOMIC ACTIVITY

Of key importance to the rebalancing of the national economy is the role of the services sectors. These industries, typically labour intensive, have helped to lift the trend employment-to-population ratio in NSW, Victoria, Tasmania, and Queensland. These states are also the ones that are showing the strongest economic performance on the ANZ Stateometer.

Residential construction has and will continue to be important to supporting employment (in construction and several services industries). Commercial construction, outside of mining, should also play a greater role for some states, with the outlook for non-residential construction looking better in some sectors such as tourism and government-backed infrastructure.