• 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