Westpac Leading Index does not tend to have much of an immediate impact on the AUD. Nevertheless, a useful indicator for the economy ahead.
The March reading was the weakest since the GFC, this latest April reading is worse
WPAC comment (in brief):
- The signal points to a broad-based economic contraction.
- This is easily the weakest reading since the GFC and is comparable to readings seen prior to Australia's recessions in the 1990-91, 1982-83, 1974-75 and 1960-61.
- The speed of the collapse in the Index is unprecedented.
- Previous lows in the Index growth rate were: March 1961 (-4.61%); August 1974 (-7.50%); February 1982 (-4.44%); January 1991 (-2.63%); and February 2009 (-5.93%).In those previous cycles the deterioration gathered momentum over six to twelve months
Bolding is mine
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Other data, skilled vacancies for April -16.4% m/m (prior -13.6%)