Tuesday, 20 December 2011

Leading index tips economy to slow

Leading index tips economy to slow

abc
On Wednesday 21 December 2011, 11:13 EST
A key measure of future economic activity slipped in October, suggesting the pace of growth may ease in the next quarter.
The Westpac-Melbourne Institute Leading Index forecasts the likely pace of economic activity in the coming three to nine months.
The annualised rate of growth fell to 2.6 per cent from 2.8 in the month, which is below its long-term average of 3 per cent.
Westpac chief economist Bill Evans says a mid-year surge which saw growth of 4.4 per cent in August has faded.
Corporate profits rose 0.6 per cent.
In line with this, productivity was up 0.5 per cent and overtime worked rose by 0.3 per cent.
"These positives were more than offset by bigger drags from manufacturing prices, the All Ordinaries Index and dwelling approvals," Mr Evans said.
"The remaining components, US industrial production and real money supply, were broadly neutral." Mr Evans expects the economy to grow by 3 per cent next year.

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