The ACT retains its lowly sixth rank on national economic performance but has the fastest annual growth in monthly retail trade, according to Commsec's quarterly State of the States report.

"There are mixed conditions in the ACT," the analysis concludes.

Meanwhile, the Business Outlook from Deloitte Access Economics suggests questions marks remain over Canberra's economy, despite federal government assurances to Chief Minister Andrew Barr that the worst of the public service cutbacks are "behind us".

"An assurance that the worst is past on something that has thrown a spanner into the ACT's works is therefore to be welcomed but we'd sound a caution here," the report says.

"It really doesn't matter which politician said what – Australia's federal budget remains on a collision course with reality, and it is likely that large and continuing shortfalls in federal finances will keep the pressure on Australian public service numbers over time.

"That's not to say that the pace of recent job cuts won't slow down. Chances are that they do exactly that.

"In fact, the latest job data are already looking a little healthier and there is also some good news evident in job vacancies, which have climbed relatively rapidly of late.

"That said, it remains the case that the level of employment in the ACT today is no higher than it was three years ago."

Deloitte Access Economics says demolishing the equivalent of one in every 80 free-standing homes in the ACT, under the $1 billion Mr Fluffy buy-back scheme, will add a new lease of life to housing.

"That explains why new building approvals bottomed in late 2014, and have risen rapidly ever since," it says.

"It also explains why housing prices got a second wind amid a flurry of public sector job losses. And it is why we would expect rental vacancy rates to tighten.

"Yet it is less clear that the overall backdrop to the ACT economic outlook is that solid. The question marks are too big for that.

"Canberra's population growth has essentially halved since late 2012, moving from well above to well below national rates of population growth as younger residents hit the Hume Highway in search of better prospects elsewhere.

"As we have previously warned, there is a risk things could get tougher for the ACT in a continuing environment of Budget austerity than is reflected in the forecasts here."

The CommSec report says retail trade in Canberra is up 6.0 per cent over the year, with "solid growth in just the last three months".

"The territory has retained sixth position on economic performance," it says.

"The territory is strongest on housing finance but is eighth ranked on equipment investment. Unemployment is lowest in the nation at 4.1 per cent."

Jobs data released last month showed a slight rise in employment in the ACT in the last quarter, with a boost in the territory's education and training industry.

Mr Barr said while he might question aspects of methodology in each report, both show the harm the Commonwealth's cuts have done to the ACT economy and the clear signs of a turnaround that is underway.

"Despite the damage Tony Abbott has done to Canberra, we have reasons to be confident," he said.

"We have the lowest unemployment in the nation and the end of the Commonwealth hiring freeze means things are looking up for jobs with our largest employer.

"The worst of the Commonwealth cuts are over and these figures show retail spending is up, which is good news for shop owners and their staff.

"The ACT government is doing its part with a multi-billion dollar pipeline of infrastructure spending that will keep our economy moving, at the same time as making our city even more liveable. And we have a clear plan to support our local employers and attract investment and entrepreneurs to our city."

Wiffens Premium Green Grocer owner Jack Irvine said his store's location at Fyshwick Fresh Food Markets meant it was somewhat protected from the economic ups and downs that affected other businesses.

"I think we're insulated from the real world, this is always busy. People always need food."

He said business was solid and the majority of their customers, which included Canberra restaurants and eateries, were also "doing really well".

"Some of the top end restaurants aren't quite filling their seats like they were, but the ones around Kingston Foreshore and Lonsdale Street, they're all absolutely flat out.

"They're spending a lot of money and serving a lot of customers."

Mr Irvine said there were plenty of people looking for work which had made it easier for the business to attract new staff.

"That's always been a challenge, finding people who are willing to work weekends but it's been pretty good lately.

-with Megan Gorrey