Western Australia continues to have the worst performing economy in the nation, a report released today has found.

However, the report found the state is benefiting from improved mining and metal prices and solid export volumes.

CommSec's State of the States analyses eight key indicators including retail spending and business investment to judge how states and territories are performing.

The latest data confirms a multi-speed national economy.

New South Wales is solidly on top with little to separate Victoria and the ACT.

Tasmania and Queensland are next, followed by South Australia, Northern Territory and then WA.

CommSec chief economist Craig James said it was not all gloom and doom for WA.

"What we have seen just in the last six months is an improvement in the unemployment rate in Western Australia, so it's fallen from 6.5 per cent in trend terms down to 5.6 per cent," he said.

"If that continues to occur we are going to see that providing momentum to the rest of the economy in terms of retail spending and housing construction."

Green shoots for mining industry

Mr James said the mining industry was showing some signs of improving on the back of stronger than expected commodity prices.

"The iron ore producers are making a bit of money at the moment. The cost of production is $15 to $20 a tonne but the price of iron ore is around $60 a tonne.

"So there is some extra dollars flowing through to the coffers of the major producers.

Mr Wyatt says there are positive signs for the WA economy. ( ABC News: Jacob Kagi )

"If that gets spend across Western Australia then we are going to see some better times ahead."

Mr James is predicting it will take at least another 12 months for the state's economy improve relative to other states and territories.

"There are the seeds there in terms of the unemployment rate coming down and that is a trend that we would expect to continue.

"But you have to remember that Western Australia experienced a one in 100 years boom in terms of mining construction, so it will take some time coming back down the other side."

WA Treasurer Ben Wyatt said he was not surprised WA continued to hold the bottom ranking, but was also upbeat.

"I am very very positive about the years ahead," Mr Wyatt said.

"The early signs around unemployment, the early signs around confidence in both retail and business are very good and I think we have at the very least troughed through the worst times."

CommSec's State of the States report is released every three months.