Western Australia has once again claimed the title of Australia’s strongest state economy, as per the CommSec State of the States report — with its lead now stretching to four consecutive quarters.

The report, which assesses eight key economic indicators including retail, housing finance, business investment, and employment, placed WA at the top for most categories. “This is a market with real momentum,” says CommSec Chief Economist Ryan Felsman. “WA continues to be driven by strong private sector investment, population growth, and a thriving resources industry.” Retail spending, new home lending, and commercial investment are all outperforming national averages, while infrastructure investment — both public and private — continues to support job creation and household confidence. South Australia took second place, thanks to strong results in construction activity and dwelling starts, underscoring the resilience of its residential building sector.

Queensland rounded out the top three, despite disruptions from ex-Tropical Cyclone Alfred earlier in the year. Victoria and Tasmania followed closely, while NSW and the ACT tied for sixth, and the Northern Territory remained in eighth position.

Nationally, slowing inflation and modest interest rate relief are improving business confidence, but each state is responding differently based on its industry mix. WA’s dominance reflects the continued strength of mining, infrastructure, and population inflow — all of which are critical to long-term economic growth.