There were 211,300 jobs in the ACT last month, just shy of the peak of 211,700 jobs in September 2012, the report commissioned by St George Economics showed.

About 2300 jobs were created in the Territory in the past year, pushing the unemployment rate down to 4.3 per cent.

This was well below the national rate of 5.8 per cent and at its lowest rate since April last year.

But economists have warned uncertainty around the federal budget has tempered the jobs outlook for the ACT.

"Efforts to move the federal budget back into surplus, however, will weigh on the longer-term outlook for public service jobs," report authors Hans Kunnen, Josephine Horton and Janu Chan wrote.

"Government activity will continue to play a large role in the ACT. In the medium term, budgetary pressures seem likely to cap rapid growth in public sector numbers, although this federal budget is expected to be neutral and so is likely to continue to support growth in the ACT."

With the ACT's population projected to hit 500,000 in the next decade, the demand for infrastructure and housing is expected create even more jobs.

But while the Territory is pushing ahead in job creation, it is lagging in wages growth.

Wages growth in the ACT was the lowest of all the states and territories in the year to the December quarter (1.7 per cent) and below the national average of 2.1 per cent, the bank reported.

Despite this, wages in the ACT remained "relatively high".

Canberrans' average weekly ordinary time earnings in the ACT are $89,000, $11,000 more than the national average.

Strong gains in the construction and retail sectors has accelerated economic growth in the ACT.

The weaker Australian dollar and and low interest rates were said to be supporting economic activity in the Territory.

The value of goods and services sold in the ACT rose 3.1 per cent in the year to December last year, up from a decline of 0.8 per cent in the year to December 2014.

Canberra continued to outpace the nation in retail sales, with a 7.7 per cent rise in spending.

Australia's retail sales growth was below the long-term average at 3.3 per cent in the year to February, with Canberra the fastest expanding state or territory.

IKEA's new store at Majura Park helped to propel growth in sales of furniture, floor coverings, housewares and textile goods by more than 65 per cent.

Strong gains in the sales of antiques and used goods, stationery and flowers (24.5 per cent) also helped drive the retail sector forward.

The ACT's economic output grew by 1.4 per cent last financial year, double the growth of the year before.

Sales were softer in fresh meat, fish, poultry, fruit and vegetables, with other specialised food retailing falling 27.3 per cent.

Liquor sales fell 10 per cent but dollars spent at cafes, restaurants and catering services boomed.

Spending in the hospitality sector rose 19.4 per cent in the year to February.

Business investment in the ACT continued to decline, with private business capital expenditure falling 13.6 per cent in the December quarter.

Private business investment fell to its lowest in three years, falling 7.5 per cent in the December quarter.

The report said the construction of light rail could give the engineering construction sector a much needed boom after a 6 per cent decline in the past year. However, that depended on the outcome of the Territory election.

The industries with the biggest slice of the ACT economy included public administration and safety (34.7 per cent), professional, scientific and technical services (10.3 per cent) and education and training (8.6 per cent).