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).