The index for August comes in unchanged on the month

From Westpac on the results:

  • The six month annualised growth rate in the WestpacMelbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose from -0.01% in July to +0.20% in August.
  • The positive Index growth rate follows 15 consecutive months where growth has been below trend
  • It is the first above trend result since early last year and the second strongest since December 2013
  • The Leading Index is clearly signalling that the economy is likely to continuing growing around its long run trend rate of about 3% a year
  • The Leading Index growth rate has lifted sharply over the course of 2016
  • The bulk of the improvement in Index since the start of the year has come from improved international conditions (commodity prices; US industrial production; share market; and yield spread). However it has been pleasing this month to see some improvement also coming locally from unemployment expectations and consumer confidence.