Growth in all of Australia’s states deaccelerated to the point of contraction in the June quarter, according to the latest ANZ Stateometer, amid the impact of the COVID-19 pandemic. With largely better news since then in areas outside of Victoria, it is possible that for most, the June quarter was the nadir of the downturn.
The two territories fared better than the states, with the Australian Capital Territory’s economy growing at an above trend but decelerating rate. The Northern Territory accelerated, but at a below trend rate.
All states and territories other than Western Australia, Tasmania and the ACT suffered a fall in economic conditions worse than during the GFC.
Unusually, there was a consistency in the weakness of labour markets, although this was unsurprising given the conditions. Trade worsened everywhere except NSW on reduced global demand, no international tourism and reduced air freight.
Moves across the consumer, housing and business components of the Stateometer were less uniform. In some states, strong household spending in areas like food retailing and homewares offset weakness in services such as restaurant meals and gym memberships.