Australia: Leading Index continues to point to above trend growth momentum - Westpac

The research team at Westpac explains that the Australia’s Leading Index continues to point to above trend growth momentum as the six month annualised growth rate in the Index, a guide to the pace of economic activity three to nine months into the future, rose from 1.14% in February to 1.17% in March.

Key Quotes

“The Apr read will include positive updates on: the ASX200, up 1% vs 2.7% last month; the Westpac-MI Consumer Expectations Index, up 0.5% vs –2.2% last month; US industrial production, up 1% vs 0.4% last month; and the Westpac-MI Unemployment Expectations Index, down –3.4% vs 1.8% last month. This looks likely to be outweighed by negative updates on commodity prices (–2% in AUD terms); dwelling approvals (–13.4% vs +8.9% last month); and the yield spread, which narrowed 23bps vs a 5bp widening last month.”