The index continues to signal below-trend economic growth in Australia.
From the WPAC report, key pints:
- The growth rate in the Leading Index held at a weak –0.96%.
That points to below trend growth in the first half of 2023.
Rising short term interest rates are weighing on the Index.
These effects are slightly offset by ongoing confidence in the labour market.
Confidence measures, while very low, have recently stabilised.
- The six-month annualised growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, was -0.97% in December, largely unchanged on the -0.96% read in November.
AUD traders are awaiting the inflation data later:
- Australian CPI data due today, preview via Société Générale
- Australian official inflation data is due mid-week - preview.
- Australian inflation data this week - the RBA will be eyeing it for the February 7 meeting
Due at 0030 GMT, 1730 US ET.