2018.09.1901:37:00UTC+00Australia Westpac Leading Index Signals Slowing Growth Momentum

Australia's leading index signaled a slowing growth momentum into the second half of 2018 and 2019, 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, fell to -0.02 percent in August from 0.5 percent in July.

Westpac expects momentum to slow to around 2.5 percent in the second half of 2018, which will be slightly below trend, with this slower pace to be sustained through 2019 at around 2.7 percent.

Important headwinds for growth going forward would be an uncertain outlook for the consumer with ongoing weak wages growth, falling property prices in Sydney and Melbourne, and a slowdown in jobs growth as both political uncertainty and global volatility weigh on business' employment decisions, Bill Evans, chief economist at Westpac, said.