Fresh national accounts data released today revealed WA’s domestic economy accelerated over the end of 2024, CCIWA Senior Economist Sam Collins explains.
Economic growth, measured by state final demand (SFD), rose 1.1% in the December quarter, up from 0.7% in September. This has kept annual growth steady at 2.7% year-on-year, reinforcing WA’s strong economic momentum.
WA also led all states in quarterly growth, while its annual average growth of 3.7% remains the highest in the nation.
| Western Australia, CVM, SA
($ Millions) |
Household Consumption | Dwelling Investment | Transfer Costs | Business Investment | Government Consumption | Government Investment | SFD |
| Sep 2024 | 35,850 | 3,060 | 1,174 | 14,253 | 15,327 | 4,538 | 74,202 |
| Dec 2024 | 36,118 | 2,912 | 1,117 | 14,768 | 15,333 | 4,736 | 74,983 |
| Q/Q | 0.7% | -4.8% | -4.9% | 3.6% | 0.0% | 4.4% | 1.1% |
| Y/Y | 2.0% | 1.6% | 3.7% | -3.4% | 6.3% | 21.2% | 2.7% |
| Annual Average | 2.0% | 2.9% | 13.7% | 1.4% | 5.6% | 17.6% | 3.7% |
| Percentage point contribution to growth (qtr) | 0.4 | -0.2 | -0.1 | 0.7 | 0.0 | 0.3 | 1.1 |
A combination of household consumption and business investment fuelled this strong result. Household spending rose 0.7% over the quarter, buoyed by pre-Christmas spending and the expanding Black Friday sales event. The partial unwinding of the latest electricity credits also pushed household spending higher.
However, despite the quarterly increase, annual average growth in household consumption has slowed to 2.0% – its weakest pace since March 2021 – as the higher cost of living has weighed on spending. Looking ahead, consumption should improve as monetary policy is further normalised.
Business investment surged 3.6%, with robust activity in both non-dwelling construction and equipment investment. However, following the sharp growth seen in mid-2023, annual average growth now sits at 1.4%, reflecting a stabilisation.
Government investment also continued to surge, rising a further 4.4% over the quarter – pushing annual growth to an extraordinary 21.2%. This is on the back of the State Government’s record Asset Investment Program, which continues to drive this spending.
On the flipside, dwelling investment was the biggest drag, slumping 4.8% over the quarter. After some positive signs in the September quarter, this momentum couldn’t be carried through to the end of the year, with weaker renovation activity in particular weighing on this result.
Overall, these numbers continue to paint a steady picture for WA’s economy, although CCIWA expects activity to soften over the next six months. We provide our updated views and forecasts in the next edition of Outlook, scheduled for release here next week.
CCIWA’s Economic reports are available exclusively to CCIWA Complete, Advantage and Corporate Members. For more see CCIWA’s Economic Insight page.
