InDaily

Adelaide's independent news

Support

Index report tips slow economic growth to continue in 2016

Business

The outlook for the Australian economy in early 2016 has deteriorated, the latest Westpac/Melbourne Institute Leading Index shows.

Comments
Comments Print article

The index, which indicates the likely pace of economic activity three to nine months into the future, fell 0.08 percentage points in November, signalling weak to moderate economic activity in the coming months.

Westpac chief economist Bill Evans said it was the fifth consecutive month the index had remained stuck below zero.

The bank is forecasting 2.8 per cent economic growth for 2015-16 while the Reserve Bank expects 2 to 3 per cent.

“It appears that the signal from the Leading Index is slightly more downbeat on growth in the first half of next year than the Reserve Bank and Westpac,” Mr Evans said.

The Federal Government on Tuesday cut its forecast for economic growth in 2015-16 to 2.5 per cent from 2.75 per cent.

AAP

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron

Comments

Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article