After this month’s stronger-than-expected June quarter national accounts release, which saw the economy grow by 0.6% over the quarter (faster than consensus and the RBA’s forecasts), Westpac’s leading index, which indicates the likely pace of economic activity relative to trend three to
nine months into the future, has stalled.
The six-month annualised growth rate in the Westpac–Melbourne Institute Leading Index dropped back to –0.16% in August from +0.11% in July.
It was the first below-trend reading since September 2024, suggesting that momentum is proving hard to sustain.
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