The ACT economy is sliding, with below-trend growth and little momentum, according to an ANZ comparison of state performance.
The ACT economy has been growing above trend but fell below trend in the three months to June, senior economist Cherelle Murphy said in the ANZ's "Stateometer" quarterly report.
Home building and government, which dominates the ACT's economy, both had solid growth in 2016, but this year, momentum in the economy and jobs growth had slowed.
Business investment was flat, despite activity from the $707 million construction of light rail.
Trade was a very small part of the ACT economy, but had increased slightly with the push to increase exports, including through international flights. Education was the biggest export earner, according to the ANZ.
While the ACT had consistently recorded better wage results and lower unemployment than nationally, labour market performance had slipped recently. Employment growth, at 0.6 per cent in the past 12 months, was one of the weakest rates in the country, although unemployment was still below the national average, at 4.8 per cent compared with 5.6 nationally.
The ANZ said housing construction had made a substantial contribution to growth, but no more growth was expected in the coming months.
Chief Minister Andrew Barr said the ANZ's report highlighted the importance of the light-rail project and the need to source new business investment - such as the recently announced Microsoft and UNSW investments in Canberra.
He highlighted the consistently better wage and unemployment outcomes and said consumer confidence was strong.
The ACT government's March quarter data shows state final demand grew 0.5 per cent in the first three months of the year, driven by government spending. ACT government consumption spending was up 1 per cent and investment up 34 per cent. Federal government spending was static, and private investment went backwards, by 4.3 per cent.