2018.06.2001:30:00UTC+00Australia's Leading Index Signals Slow Growth: Westpac

Australia's leading index signaled slower growth over the second half of 2018, data from Westpac showed Wednesday.

The Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, dropped to +0.11 percent in May from +0.83 percent in April.

Although the May update was the weakest since last September, the index growth rate still indicates that momentum is running above trend, Westpac said.

Westpac continues to expect growth to moderate from here, to a trend 2.7 percent over 2018, and a below trend 2.5 percent in 2019, led by softening domestic drivers but with easing commodity prices in the mix as well.