Leading growth indicator points to lacklustre growth

The annualised growth rate of the Westpac–Melbourne Institute Leading Index was 2.6% in January 2012, below its long term trend of 3.0%. Westpac Senior Economist, Matthew Hassan, commented, "The Leading Index continues to show lacklustre, sub-trend growth momentum in the Australian economy. Data updates for the December quarter reveal a markedly weaker picture through late last year with the annualised growth rate of the Leading Index now seen dropping to just 0.7% in November. Excluding the 2008-09 downturn, that marks the weakest read since the post-GST soft patch in 2000-01. The situation has improved from that low point but the Leading Index continues to point to a sluggish growth at best in the early part of 2012”. (21 Mar)

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Consumer sentiment falls on financial concerns

The Westpac Melbourne Institute Index of Consumer Sentiment fell by 1.6% in April to 94.5 down from 96.1 the month before. Westpac Chief Economist, Bill Evans notes "this result comes as a mild surprise". Evan's goes on to say "it is true the reserve Bank disappointed many last week by not delivering a much needed rate cut but the guidance from the Governor's statement was quite encouraging". (11 Apr)

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Home loan approvals fall

The number of home loans approved in January fell 1.2% per cent to 47,768, with new home buyers as a percentage of total owner occupied housing finance commitments falling to 20.3% in January (versus 20.9% for December 2011). The Australian Bureau of Statistics (ABS) reports between December 2011 and January 2012 the average loan size for first home buyers increased to $280,900. At the end of Jaunary 2012, the value of outstanding housing loans financed by authorised deposit-taking institutions (ADI's) rose 0.5%. Outstanding bank housing loans rose by the same margin. (13 Mar)