Leading growth indicator falls

The annualised growth rate of the Westpac–Melbourne Institute Leading Index was 2.6% in October 2011, below its long term trend of 3.0%. Westpac Chief Economist, Bill Evans, commented, "The growth rate in the Index has slowed from the 4.4% which was reported for August and is now back below trend. It appears that the boost to above trend growth we saw in July and August has quickly faded and the ‘around trend’ story which has been generally the case since the beginning of 2011 is now appropriate.” (21 Dec)

Consumer sentiment takes a hit

The Westpac Melbourne Institute Index of Consumer Sentiment fell by 8.3% in December from 103.4 in November to 94.7 in December. Westpac's Chief Economist, Bill Evans commented, “The Index has now fallen to its lowest level since August this year when respondents were concerned that the Reserve Bank was preparing to raise interest rates while global financial markets had taken a tumble”. (14 Dec)

Home loan approvals up

THE number of home loans approved in October rose 0.7 per cent to 51,981, official figures show. That was from a downwardly revised 51,639 in September. Economists' forecasts had centred on housing finance commitments to be unchanged for the month. The Australian Bureau of Statistics (ABS) said on Monday that total housing finance by value fell 2.5 per cent in October, seasonally adjusted, to $20.458 billion. (12 Dec)