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


Another dour reading from the leading index.


  • 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:


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