The Westpac / Melbourne Institute Leading Index

  • Down 0.12% on the month to 96.6, while the prior was revised to -0.23%, from -0.15%

Still indicating below trend growth for the Australian economy

More (comments from WPAC):

  • The six month annualised growth rate in the Leading Index (this indicates the likely pace of economic activity three to nine months into the future) fell from -1.07% in February to -1.53% in March
  • The Leading Index continues to point to a material loss of momentum and growth pulling back to below trend rates through the middle of the year
  • However, some of the causes of the current weakness are likely to be transitory. In particular, the Index growth rate - a six monthly measure - is still being heavily impacted by the sharp fall in Australian commodity prices in the second half of 2015. Prices have since posted a solid rally and although it remains to be seen how well this will be sustained, even a pull-back that left prices flat overall would see the drag on the Index from this component ease
  • The Leading Index continues to point to challenging conditions near term, emphasising the downside risks to growth from external developments and the 'complicating' effect of the recent rise in the currency.