Australia’s six-month annualized growth rate in the Westpac–Melbourne Institute Leading Index inched up to +0.06%, signaling a slight improvement in economic momentum.
However, Westpac cautioned that this positive signal may not be sustained due to “sharp falls in commodity prices.” The detailed report highlights that the economy is facing “significant cross-currents,” with economic activity improving but expected to remain “below trend into early 2025.”
As RBA gears up for its next meeting on September 23–24, Westpac emphasized the importance of the upcoming June quarter national accounts, set to be released on September 4. These figures are expected to shed light on the strength of domestic demand and could ease some of the RBA’s concerns regarding productivity growth.
However, Westpac noted that there is little chance of a policy shift at the September meeting, as the next quarterly CPI update isn’t due until October 30.
