The Australian economy is likely to experience improvement in its growth rate over the next few months according to the results of a new study.
The Westpac-Melbourne Institute Leading Index – projects the rate of economic activity between three to nine months into the future saw its level rise to 3.9 per cent in November compared to 3.1 per cent in October. November’s result is well above the long term average rate of 2.8 per cent.
In contrast, the Westpac Coincident Index which measures present growth rates was 2.7 per cent and stood lower than its long term average rate of 3.0 per cent.
Bill Evans Chief Economist of Westpac expressed surprise at the index results, but said he was optimistic about the prospects for the Australian economy during 2013.
“The Index is sending a somewhat more buoyant growth signal than we currently expect to be the case. Over the course of the last six months, the annualised growth rate in the Index has increased from 1.5 per cent (well below trend) to 3.9 per cent (above trend). Our current forecast for GDP growth over the course of 2013 is 2.75 per cent, below trend growth in the economy.” he said.
Mr. Evans also said that mining investment is likely to improve and residential construction will expand during 2013.
This article first appeared on Money-AU