Economic Buzz: Australia Westpac Leading Index Indicates Economic Slowdown

21 Sep 2022 , 11:54 AM

Australias economy is likely to lose momentum amid rising interest rates, falling commodity prices and cooling labor market, Westpac reported. The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index fell to -0.36 percent in August, from +0.49 percent in July. The index signals the likely pace of economic activity relative to trend three to nine months into the future. The latest score pointed to a material loss in momentum to a below-trend pace. Westpac expects the economic growth to slow to 0.6 percent in the December quarter from a robust 1.1 percent in the September quarter. Growth is projected to slow further in 2023, with a gain of just 1 percent over the full calendar year.Powered by Commodity Insights