Australia Westpac Leading Index Signals Sluggish Growth

(RTTNews) - Australia's leading index signalled sluggish and below-trend growth in May, Westpac said Wednesday.

The six-month annualized 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, rose slightly to -0.17 percent in May from -0.18 percent in April.

Westpac said sluggish and below-trend growth momentum is likely to continue through the second half of this year and into early 2027.

Although the growth pulse is not overly weak, it is likely to take some time yet before the full negative impacts from higher interest rates and the spike in fuel costs become apparent.