NSW economy breathes a glimmer of hope

The government's $8.7 billion handout to consumers in December along with lower interest rates have played a key role in stimulating NSW's housing and retail sector. Australia Bureau of Statistics data released yesterday has shown sizable retail sales growth for the month of January, up 1.9 per cent in NSW, compared to just 0.25 per cent nationally.

ANZ senior economist Katie Dean said, “Year-on year retail sales in NSW are up 5.4 per cent versus 5.9 per cent nationally, so the rebound comes after an extended period of underperformance.”

Similar trends followed for the housing sector. For the quarter ending in December, owner occupier loans grew by 10.8 per cent in NSW, compared to a national increase of just 6.4 per cent.

HIA chief economist, Harley Dale, said, “Anecdotally there is also some evidence investors are starting to look around as equities continue to head south and rental yields start to climb.”

The NSW unemployment rate of 5.4 per cent is slightly higher compared to 4.8 per cent nationally.

Source: The Australian Financial Review