Westpac’s Australian Leading Index is “stuck in negative territory”

Another dour reading from the leading index.

WPAC:

• The six-month annualised 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, was -1.04% in January, largely unchanged on the -1.09% read in December.
• The growth rate in the Leading Index held at a weak –1.04%.
• This points to below trend growth through most of 2023.
• The growth rate has now been negative for six consecutive months.
• The Index is indicating that the economy’s growth rate will remain below trend through most of 2023 – consistent with Westpac’s forecast.
• Global factors, monetary policy and, recently, hours worked have weighed heavily on the Index.

Still to come from Australia later: