Victoria's state final demand - a measure of total spending that is often used as a proxy for growth - fell by 0.4 per cent in the September quarter.

But that came on the heels of a solid 1.3 per cent jump the previous June quarter.

The seesawing result - up one quarter and then down the next - was the result of a single transaction.

In the June quarter, Melbourne's Comprehensive Cancer Centre was transferred from private to public ownership, after being built under a public-private partnership arrangement. This showed up as a massive 35.7 per cent just in public investment.

A return to more normal levels of government investment spending in the September quarter following the one-off transaction resulted in a 17.8 per cent drop in public investment, a correction that suggested the economy went backwards.

In annual terms, the state economy remained relatively healthy, growing by 2.5 per cent over the year to September. It was the second strongest state result in the nation.

The Andrews government has made much of Victoria's solid economic performance, arguing this has allowed it to build up surpluses to fund infrastructure and better services without jeopardising the budget.

Treasurer Tim Pallas said 184,000 jobs had been created since the November 2014 election.

"For the last two years we've delivered on the things that matter most to people – growing a stronger economy and creating more jobs for Victorians," he said on Wednesday.

Even so, the state economy still faces some headwinds, with the end of automotive manufacturing and the closure of the Hazelwood power plant yet to hit.