The
Westpac Melbourne Institute Leading Index, which indicates the likely
pace of economic activity three to nine months into the future, was 4.9
per cent in May - above its long-term trend of 3 per cent but lower than
its April reading of 5.4 per cent. The leading indicator of Australia's
economic activity improved in May, while staying above its long-term
trend for a sixth consecutive month, a report from Westpac and the
Melbourne Institute revealed Wednesday.
With the improvement in the Index being narrowly based around the quarterly components of corporate profits and productivity with little contribution from the cyclical components, we feel justified in qualifying the markedly optimistic reads from the Index over the last few months, Westpac Chief Economist Bill Evans said.
The annualized growth rate of the coincident index, which gives a pulse of current activity, was 2.7 percent, slightly below its long term trend of 2.9 percent.
Source by Commodity Insights
With the improvement in the Index being narrowly based around the quarterly components of corporate profits and productivity with little contribution from the cyclical components, we feel justified in qualifying the markedly optimistic reads from the Index over the last few months, Westpac Chief Economist Bill Evans said.
The annualized growth rate of the coincident index, which gives a pulse of current activity, was 2.7 percent, slightly below its long term trend of 2.9 percent.
Source by Commodity Insights
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