Economic Buzz: Australia Westpac Leading Economic Index Eases In June

20 Jul 2022 , 12:29 PM

The monthly level of the Westpac-Melbourne Institute Leading Index of Economic Activity was 97.88 in June, down from 98.04 in May. The six-month annualised growth rate of the Leading Index eased further but remains above average. Westpac currently expects growth to slow from 4% in 2022 to 2% in 2023. That outlook is highly dependent on the profile for the Reserve Banks tightening cycle. Despite the recent slowing, the Index growth rate is still up on the start of the year. The 0.40% read in June compares to a -0.33% in January. The main components driving that improvement have been: a rebound in hours worked coming out of omicron disruptions early in the year (adding +0.66ppts to the growth rate); a lift in commodity prices in AUD terms (+0.33ppts); a stabilization in dwelling approvals (+0.17ppts); and steady gains in US industrial production (+0.10ppts). Powered by Commodity Insights