21.05.201923:05:00UTC+00Australia Leading Index Falls In April

Australia's leading index dropped again April and remained consistently negative over the past five months, signaling that economic growth in the first quarter is likely be below trend, Westpac reported Wednesday.

The Westpac- Melbourne Institute Leading Index declined to -0.47 percent in April from -0.13 percent in March.

This consistent 'below trend' signal from the Index is in line with Westpac's growth forecast for 2019 of 2.2 percent, Bill Evans, chief economist at Westpac said.

Data showed that the leading index growth rate swung sharply over the last six months. Six of the eight components have driven the turnaround, led by a weaker pulse from US industrial production and a narrowing yield spread with drags from a levelling out in commodity prices; a softening in the Westpac-MI Unemployment Expectations index; dwelling approvals and the Westpac-MI CSI Expectations Index.

Meanwhile, the only significant offsetting positive contribution came from the ASX 200, which added +0.43 percentage points to the six month Leading Index growth rate.