Australia’s leading index signaled soft economic activity through the second half of the year, data from Westpac showed Wednesday.
The six-month annualized 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, slowed to 0.03 percent in June from 0.11 percent in the previous month.
Data showed that the main drag came from commodity prices, sentiment and hours worked.
Westpac cautioned that the index growth rate could easily slip into negative again if there is a weakening in US growth, another sell-off in financial markets or diminished prospects for interest rate cuts.
Westpac forecast the economy to expand only 1.7 percent over calendar 2025, a small improvement on the 1.3 percent gain in 2024.
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