Tuesday, July 16, 2013

Economic Buzz: Australia May Westpac Leading Index Shows Upside

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

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