Australia: Leading Index growth rate slows in June – Westpac Australia Sentiment EconomicIndicator Banks
Bill Evans, Analyst at Westpac offers his afterthoughts on the Australian Westpac-Melbourne Institute Leading Index.“The Leading Index’s growth rate surged in February and March as the benefits to the economy from the reopening in the eastern states gained maximum momentum. Since that time the growth rate in the Leading Index has been sliding.”
“The June Index is capturing the very early impact of central bank tightening cycles. Most notable for the Australian economy has been the Reserve Bank of Australia, where the first move was initiated in early May.” “The reading for June indicates above trend growth in the near term. We expect that as we move further into the three-to-nine-month ‘window’ growth prospects are going to falter.”
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.