The Tasmanian Government says the latest retail trade and building approval figures show the continued resilience of the state's economy.

There has been a recovery in the number of new homes being built in Tasmania, with approvals up 3.4 percent for the September quarter.

The Housing Industry Association's Stuart Clues says Tasmania is bucking a national trend.

"We haven't had the crashing lows of the other states," he said.

Retail trade has also grown by 0.4 per cent to just over $440 million.

Richard Dowling from the Chamber of Commerce and Industry says that is the fourth highest growth rate of all the states and territories.

"Tasmania's retail trade has been bucking the trend in recent months," he said.

"We're certainly holding our own against national growth rates."

"Over the past year we've recorded similar to the national rate but exceeded many other states and territories.

"Also we see particularly in Tasmania much stronger spending in groceries and household goods but weaker spending on clothing and footwea," he said.

Mr Dowling says the Christmas period will be the real test.

"With another interest rate rise expected maybe before Christmas there's a real danger that could dampen retail trading."

The government says it is making tough decisions in the areas of water and sewerage, irrigation and renewable energy in the face of rising interest rates.