Australia Westpac-MI Leading Index Remains Strong


A leading indicator of Australia's economic activity improved in May, while staying above its long-term trend for a sixth consecutive month, a report from Westpac and the Melbourne Institute revealed Wednesday.

The annualized growth rate of the Westpac-MI leading index, that indicates the likely pace of economic activity three to nine months into the future, was 4.9 percent in May, above its long term trend of 3 percent.

"With the improvement in the Index being narrowly based around the quarterly components of corporate profits and productivity with little contribution from the cyclical components, we feel justified in qualifying the markedly optimistic reads from the Index over the last few months," Westpac Chief Economist Bill Evans said.

The annualized growth rate of the coincident index, which gives a pulse of current activity, was 2.7 percent, slightly below its long term trend of 2.9 percent.

News are provided by InstaForex.