June 16th, 2010 
Travis Brown A leading index of economic growth expects suggest that economic growth will slow down during the second half of 2010 after falling for the first time in ten months.
The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months in the future, was unchanged in April at 264.4 points.
Annualised growth declined to 7.6 per cent from 8.8 per cent in the March quarter, though the rate still remains well above its long term trend rate of 3 per cent.
The report suggests the first economic slowdown in 10 months.
“This is the first slowing after 10 consecutive months of sharp acceleration. The year to March saw the sharpest upturn in the Leading Index since the rebound coming out of the early 80s recession,” Westpac Senior Economist Matthew Hassan said.
Mr. Hassan added that the index continues to suggest economic growth is robust but the April moderation is notable because it predates the volatility experience by financial markets during May and June.
Mr Hassan said while all the data on other components was not available, the sharp turnaround in commodity prices and fall in equities alone could see more slowing in the growth rate of the Leading Index in May-June.
“The overall level of the Index was unchanged in the April month.”
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