Australia’s Westpac Leading Index slips back below trend

Info comes via analysts at Australia’s Westpac Bank.

• 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, dropped back to -0.16% in August from +0.11% in July.
• First below-trend reading since late 2024.
• Recovery still intact but momentum is proving hard to sustain.
• Nearly all components have contributed to moderation over last six months

Not a positive outlook ahead from this measure. The Reserve Bank of Australia have been reluctant to cut rates quickly due to sticky inflation and a still relatively robust labour market. They do have to contend with some signs the economy is slowing a touch though.

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AUD/USD is a little lower, but thats more to do with US dollar kicking back up a touch. EUR, NZD, GBP, JPY all down too.

This article was written by Eamonn Sheridan at investinglive.com.