Canberra's mortgagees are keeping their wallets open and buoying economic growth as low inflation delays interest rate rises.
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While the ACT is enduring a softening job market, economic analysts say the worst of its public service cuts have passed and underperforming global inflation has kept rate rises at bay, encouraging Canberrans to spend up at retailers.
The latest economic report from Deloitte Access Economics, published on Monday, says the ACT economy will continue to benefit from dysfunction in the Senate, as the disarray prevents further public service cuts.
Deloitte analyst Chris Richardson said while job cuts at the public service had dragged down the ACT's economy between 2012 and 2015, they would not continue.
"Not in big picture terms, in that we get big nasty cutbacks from the feds," he said.
Meanwhile, CommSec's latest economic report placed the ACT third among states and territories for performance, and in the same league as flourishing economies NSW and Victoria, but warned creeping unemployment was stalling momentum.
The ACT's jobless rate was 16.9 per cent up on its decade average, placing it among the worst performers in unemployment for CommSec.
But jobs data from the Australian Bureau of Statistics last week showed the ACT's unemployment low relative to other states and territories, at 4.4 per cent in trend terms, below the 5.5 per cent national figure.
Mr Richardson said ACT retail was performing above the national average despite sluggish wage growth, as housing assets made people feel wealthy enough to keep spending.
CommSec confirmed Canberrans were spending, ranking the ACT third on retail, saying expenditure was up 13.2 per cent on the decade average, behind only NSW and Victoria.
The ACT's 1.78 per cent annual population growth also led the nation except for Victoria, but was 4.3 per cent below its decade average.
Canberra outperformed the nation on housing finance commitments, up 32.1 per cent on its long-term average, and well ahead of second-placed Victoria on 21 per cent, according to CommSec.
However construction starts for new dwellings were 0.2 per cent down.
Mr Richardson said high construction activity, driven by the Mr Fluffy asbestos remediation and the rise in unit developments, would continue well into next year before slowing down.
Deloitte said indicators did not point to high inflation risk, although predicted rates would lift.
"At best they spell out a very slow burn in which pressures will lift over the next couple of years," it said.
Better global growth, particularly China's upswing, had increased the government's tax receipts, Deloitte said.
"Yet not all of the recent buoyancy may last, and some savings on spending owe more to slower-than-budgeted rollouts than they do to sustainable savings."