The annualised growth rate of the Westpac–Melbourne Institute Leading Index jumped from –0.4% in April to 4.1% in September this year — above its long-term average of 2.8%. According to Westpac, main contributors to the growth improvement were:
- manufacturing materials prices (1.2 ppt’s);
- overtime worked (1.0 ppt’s);
- productivity (1.2 ppt’s);
- corporate operating surplus (1.1 ppt’s);
- dwelling approvals (1.0 ppt’s); and
- All Ordinaries index (0.2 ppt’s).
Negative influences were:
- U.S industrial production (–0.9 ppt’s); and
- real money supply (–0.2 ppt’s).

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
Nice
That is a huge swing. Who got what wrong? Just shows how indicators can be manipulated to the benefit of big business and government. Try telling the thousands of Aussies that have been laid off in the past 2 months and many about to be finished just before Christmas that everything is Ok and the country is growing!
First comment , spot on ! Everywhere you turn, everyone you speak to has the same thing to say . And it’s not that we are going well.