Next 3 to 9 months look solid
(21 April 2011 – Australia) The Westpac/Melbourne Institute Leading Index report indicated the next three to nine months looked strong with healthy business investment and a robust labour market.
The report indicates the likely pace of economic activity in the near future, which was 4.7 percent in February, well above the long term trend of 3.3 percent.
Westpac chief economist Bill Evans said January’s growth rate was revised up significantly to 4.8 percent from 3.5 percent, due to the release survey showing a sharp improvement in the labour market.
'The message from the index has changed from one of charting an ongoing slowdown in the growth pace of the index, to one of relative stability over the last six months,' Mr Evans said.
'That outlook is in line with Westpac's view that demand growth in 2011 will be considerably stronger than average at around 4 percent in 2011.'
Westpac chief economist Bill Evans said January’s growth rate was revised up significantly to 4.8 percent from 3.5 percent, due to the release survey showing a sharp improvement in the labour market.
'The message from the index has changed from one of charting an ongoing slowdown in the growth pace of the index, to one of relative stability over the last six months,' Mr Evans said.
'That outlook is in line with Westpac's view that demand growth in 2011 will be considerably stronger than average at around 4 percent in 2011.'
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