July 31 (Reuters) - Moody's:
* Moody's comments on Australian state budgets for fiscal 2018
* Expect Australia's economic growth will support budget performance of states, but economic performance of states will become more divergent
* Moody's says FY 2018 Australian state budgets project improvements for fiscal 2018 to 2021, although with larger deficits or smaller surpluses than forecast
* Moody's says see risks to Australian states' economies in shift in consumer spending patterns, weaker wage conditions, slower housing sector