WA named top state economy for fifth successive quarter

The rankings measure each state's performance relative to its own 'normal' level of activity, or the average over the preceding decade.

Household spending in Western Australia was up 14.8% from the decade average, the highest in the nation, with equipment investing, housing finance, and dwelling starts all also leading the rest of Australia.

That's four of the total eight indicators topped by WA, underpinned by nation-high population growth, while Acting Premier and Treasurer Rita Saffioti says it's also partly down to the work of her Government.

"WA has taken the lead on dwelling starts, showing our Government's efforts to boost housing supply are delivering for Western Australians," she said.

"Our strong financial management and focus on economic diversification is driving real, sustained results."

Resource-driven states to dominate 2026?

Queensland moved up to second in Q3 after stronger consumer spending and housing finance.

Chief CommSec Economist Ryan Felsman says the Sunshine State is "rebounding" after weather related disruptions earlier in the year.

"Exports [are] stabilising, while the public investment outlook is promising...due to planned Olympic infrastructure projects," he said.

The NT was another strong performer, up to fourth spot after strong relative population growth, and Mr Felsman is backing Australia's resource-driven states to continue to lead the way next year.

"Western Australia, Queensland and the Northern Territory are best positioned heading into 2026," he said.

Australia's economy in decent shape?

The national accounts for Q3 aren't scheduled for release until December but the data so far suggests Australian household spending continued to pick up through to September.

The household spending indicator rose another 0.1% in August, the fourth consecutive month of growth.

Spending was 5% higher than in August 2024, well above the inflation rate over the same period (3% according to the monthly CPI).

After three cash rate cuts the economy looks to be picking up steam, with little sign that Australia is in danger of a high inflation/weak growth scenario like that facing New Zealand.

Another rate cut before the end of the year could be another potential boost for growth, but next week's monetary policy decision is likely contingent on the Q3 CPI figures, set for release on Wednesday.

The unemployment rate unexpectedly increased to 4.5% in September, but there was still 15,000 more people that found employment during the month so the headline rate may not be enough by itself to necessitate another cut.