Western Australia continues to dominate the retail landscape, ranking first in retail spending in Commonwealth Securities’ (CommSec) latest State of the States report.
The state’s retail spending remains a standout, with real (inflation-adjusted) retail trade for the December quarter 2024 recorded at 11.5 per cent higher than its decade-average, reflecting strong consumer demand, supported by factors such as job growth, tax cuts, and government energy subsidies.
Victoria holds second place in retail spending, with spending 10.4 per cent above its decade-average.
Queensland ranks third, with real retail trade up 10.1 per cent. The Australian Capital Territory (ACT) is in fourth position, showing an 8.6 per cent increase in retail spending, while South Australia has moved up to fifth place, with a 7.0 per cent rise in spending.
New South Wales and Tasmania experienced increases of 6.7 per cent and 6.8 per cent, respectively, while the Northern Territory saw the smallest growth, with retail spending up only 1.4 per cent.
“Western Australia performed strongly across multiple economic indicators, as ‘The West’s’ strong relative population growth has boosted labour and housing markets, encouraging consumers to spend,” Ryan Felsman, Chief Economist at CommSec, said.
Felsman, however, noted that consumer spending remains subdued amid still-elevated borrowing costs.
“As we look ahead, an expected reduction in interest rates could boost economic sentiment in the mortgage-sensitive states of New South Wales and Victoria, while the interplay between interest rate cuts, federal election outcomes, and global trade dynamics will be crucial in shaping the economic outlook,” Felsman said.