Australia's economy in "go-slow zone"

The Westpac–Melbourne Institute Leading Index has been released, showing that Australia’s forward-looking economic momentum has slowed, with the six‑month annualised growth rate easing to +0.16% in November from +0.32% in October.

While still positive, the index signals subdued growth over the next 3–9 months, reflecting share market volatility, weaker consumer expectations, and softening labour market indicators.

Westpac expects GDP growth to lift only marginally from 2.1% in 2025 to 2.4% in 2026, around trend.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Australia’s economy in “go-slow zone”