The ACT had the nation's largest gap between wage rises and consumer price growth in the past economic quarter as the Coalition government's restriction on public servant pay continued into another year.

CommSec's latest State of the States report, published on Monday, shows wages in Canberra rose 1.8 per cent compared with growth in consumer prices of 2.8 per cent. The ACT and South Australia were alone among states and territories in having wage growth lagging cost of living rises.

Federal public servants have had annual pay rises restricted to 2 per cent under a strict policy set to continue under new bargaining rules.

Compared with other states and territories - including those with higher unemployment - the ACT's wage growth was more subdued despite Canberra having the highest cost of living rises.

CommSec chief economist Craig James said the pay restriction may be to blame, and that federal and territory governments might have to look at their pay offers as wage growth fell behind consumer price rises.

The disparity between pay and cost of living growth was a risk for retailers vulnerable to weakening consumer spending, and could counter any sales growth driven by Canberra's rising population, he said.

Staff might also move to better-paying employers if low unemployment led to faster wage growth in other sectors.

"The risk you run in a tighter job market is if wage growth isn't keeping up with the private sector, you may lose people to other businesses," he said.

Mr James also cautioned wage rises would need offsetting by productivity gains inside federal and ACT government agencies.

Commsec's October report ranks the ACT third in the nation on economic performance, behind Victoria and NSW, and ahead of a resurgent Tasmania.

Canberra's economic growth, about 20 per cent higher than its decade average, is built on fast population growth (2.08 per cent), and business investment.

The ACT's population grew at a rate 9.3 per cent faster than its 10-year average, behind only Tasmania, which has reversed a longstanding trend of low growth.

Home lending in Canberra was nearly 20 per cent higher than in the past decade, putting the ACT ahead of every other state and territory on housing finance commitments.

Compared to last year, home lending was up only in Tasmania, CommSec said.

"In all states and territories except South Australia and Tasmania, annual percentage changes have weakened in the past three months."

Canberra ranked sixth among states and territory for home building, which was nearly 10 per cent above the decade average in the ACT.

The territory's 2 per cent housing price growth showed the ACT government - in charge of releasing land for development - had achieved a balance of supply and demand for new homes, Mr James said.

Canberra's retail spending was up 14 per cent compared with the decade average and unemployment at 3.6 per cent was below its average for the past 10 years.

"There are certainly other parts of Australia that would like the balanced growth happening in the ACT."