CommSec's State of States report has revealed that Victoria and NSW are the top states for retail trade in Australia.
Both states ranked top in overall economic performance, with Victoria ranking first on economic growth, retail trade and unemployment.
Economic activity in Victoria in the September quarter was 26.6% above its 'normal' level of output, ahead of NSW, with output 25.4% above the 'normal' level of output.
NSW is consistently strong across the indicators and is second-ranked on six of the eight indicators.
Retail spending in Victoria was 18.1% above decade-average levels in the September quarter.
This rise has been supported by strong population growth, low unemployment, increased job security and infrastructure building.
Spending in NSW was 17.5% above decade-average levels, once again supported by home building, infrastructure building and firm employment.
Spending in the ACT was up 14.4% on the decade-average, followed by Tasmania, up 13.7%.
In fifth spot was South Australia with spending 11.% above decade-averages followed by Queensland, with spending up 9%.
The Northern Territory recorded the weakest result on retail spending, up 4% on the decade-average, below Western Australia with 5.8% growth.
In terms of annual growth of real retail trade, Victoria is strongest with a 4.8% increase, followed by Tasmania up 3.8% and the ACT up 2.9%.
Looking at annual growth of monthly retail trade, Victoria is up 6% ahead of the ACT up 5.9% and Tasmania up 5.3%.