The state topped CommSec’s July State of the States report, which gauges the economic momentum of each region, after ranking first in the previous two quarters.

South Australia’s ranking was attributed to its job market, dwelling starts and construction activity.

SA had the most consistent performance, achieving the top spot in three of the eight economic indicators utilised in the report.

The state was followed again by Western Australia and Victoria in second and third place, respectively.

WA was fast gaining on top spot, leading on relative population growth and home lending metrics.

CommSec senior economist Ryan Felsman said SA still had the wood on its rivals in terms of relative unemployment, construction work done, and dwelling starts, but WA had stronger momentum.

“Across the country, the economic performance of Australia’s states and territories is being supported by both strong employment and population growth, at a time of higher-than-desired price inflation,” he said.

“South Australia’s continued high-ranking is being driven by a solid job market and construction activity.

“While South Australia retains first place, Western Australia is seeing the strongest annual economic momentum, so it will be interesting to see how this plays out in the coming quarters.”

Premier Peter Malinauskas welcomed the report.

“The independent evidence is clear. South Australia has an enviable position as the nation’s economic leader,” he said.

“Despite international headwinds, we have so much economic opportunity before us.

“I know many families are doing it tough in a high cost environment, but SA’s strong economic position provides a strong platform for our future.”

SA Treasurer Stephen Mullighan said the state’s economy continued to outperform in the face of national economic headwinds.

“The release of the Malinauskas government’s Housing Roadmap should provide further confidence to a residential construction sector that is already outperforming the rest of the nation,” he said.

The CommSec report, which judges performance relative to each jurisdiction’s historic benchmark, had the Australian Capital Territory in fourth place.

The ACT topped the list in terms of economic growth but was held back in other areas, such as relative unemployment.

Queensland and Tasmania took out fifth and sixth place, respectively, while Australia’s largest economy NSW came in seventh, let down by lower retail spending.

CommSec also ranked the states based on the annual growth rates of the eight indicators, with Western Australia and Queensland having the strongest annual economic momentum. South Australia ranked seventh for economic momentum, followed only by the Northern Territory.

“Generally speaking, state economies have slowed as consumers respond to higher borrowing costs and price pressures,” said Felsman.

“The future economic path will be dependent on the resilience of the job market and interest rates.”

The Northern Territory once again took out last place.

South Australia first topped the list in January this year, the first time in the 14 years CommSec has been creating the report that the state secured the number one position.

HOW THE STATES FARED:

1st: South Australia

2nd: Western Australia

3rd: Victoria

4th: ACT

5th: Queensland

6th: Tasmania

7th: NSW

8th: Northern Territory

– with AAP