19.03.202501:19:29UTC+00Australia Leading Index Up Slightly

The Westpac-Melbourne Institute Leading Economic Index in Australia experienced a 0.1% increase in February 2025, maintaining the same growth rate as observed in the previous month. Concurrently, the index's six-month annualized growth rate, which forecasts economic activity levels compared to the trend three to nine months ahead, climbed to 0.8% from January's 0.6%. This recent data suggests that the economy is gradually building momentum, although external factors are beginning to apply a slight deceleration. Matthew Hassan, leading the Australian Macro-Forecasting team, anticipates that further reductions in inflation will bolster the Reserve Bank of Australia's (RBA) confidence to initiate more rate cuts within the year, with the following reduction expected at the May session. He also predicts that GDP growth will experience a modest ascent throughout 2025, culminating in a 2.2% year-on-year increase by year's end. Although this would represent a significant improvement from 2024's 1.3% rise, it still implies a relatively moderate economic performance.