Australia Leading Economic Index

Last Release

Nov 30, 2024

Actual

0.1

Units In

0.2

Frequency

Monthly

Next Release

Jan 24, 2025

Time to Release

1 Months 4 Days 2 Hours

Highest	Lowest	Average	Date Range	Source
0.76 Nov 2020	-1.74 Apr 2020	0 %	1960-2024	Westpac-Melbourne Institute

The Westpac-Melbourne Institute Leading Index of Economic Activity combines a selection of economic variables that typically lead fluctuations in economic activity into a single measure that provides a reliable cyclical indicator for the Australian economy. The index includes the following components: S&P/ASX 200, dwelling approvals, US industrial production, RBA Commodity Prices Index (A$), aggregate monthly hours worked, Westpac-MI CSI expectations index, Westpac-MI Unemployment expectations index, yield spread (10Y bond – 90D bill). The index has a base value of 100 as of 1996.

Latest Updates

The Westpac-Melbourne Institute Leading Economic Index in Australia was up 0.1% month-over-month in November 2024, following a 0.2% rise in the previous month. Meanwhile, the six-month annualized growth rate in the index, which indicates the likely pace of economic activity relative to the trend three to nine months into the future, slightly lifted to 0.32% in November from 0.22 in October. It was the first back-to-back positive reads on the index growth rate in nearly 2-1/2 years, amid optimism that economic output will expand slowly over the next few quarters. Australia's GDP is forecast to rise from 0.8% yoy pace currently to 2.2% by the end of 2025. "We expect the central bank to leave interest rates unchanged at its February meeting, with an easing expected to commence in May," said Matthew Hassan, head of Australian Macro-Forecasting.