- Westpac/Melbourne Institute Leading index came in at +0.2% fpr December vs. +0.6% in November.
- On an annualised basis, which indicates the expected pace of activity in the economy 3 to 9 months into the futre, it was +4.3% in December, well above its long term trend of 2.8%
- Suggests the economy is carrying reasonable momentum in H1 2013
- Still a question over continued capital investment in mining – if this support to the Australian economy declines it could become a drag
The components of the index performing well:
- productivity +0.8%
- coprorate profits +0.8%
- dwelling approvals +0.4%%
Source: Westpac/MI