Westpac with the note.
- Leading Index growth rate remains in negative territory at -0.75%.
- Eighth consecutive negative print.
- Index consistent with below-trend growth throughout 2023.
- Households at the centre of slowdown with further drags from construction and global factors.
The growth rate in the Leading Index has registered its eighth consecutive negative print, pointing to an extended period of below-trend growth in the Australian economy.
The Index for March is now consistent with below-trend growth extending throughout the remainder of this year. Westpac is forecasting growth of only 1% in 2023. The IMF recently revised down its growth forecast for Australia in 2023, from 1.9% to 1.6%, while the Reserve Bank is also forecasting growth of 1.6% in 2023.
While the Leading Index does not yet provide a guide for 2024, Westpac is forecasting ongoing lacklustre growth of 1.5% with the household sector again accounting for most of the weakness, weighed down by pressure on real disposable incomes.
Welcome to your new lost decade of mass immigration crushed incomes combined with higher inflation.
Noice!
