Australia Westpac-Melbourne Institute leading index rose from -0.1% to 0.4% in December. That’s the first positive, above trend, read on the since Since Delta outbreak last August. The index signalled that growth outlook has improved with above trend growth over the next three to nine months.
Westpac expects contraction in spending in January due to Omicron, and zero growth in GDP in Q1. But the economy is expected to bounce back strongly over the rest of 2022, with a solid 5.5% growth for the year overall.
Westpac also continues to expect interest rate hike by RBA before August meeting.
