Australian leading index remains subdued: ‘Slow motion’ recovery continues to underwhelm

Australian leading index remains subdued: ‘Slow motion’ recovery continues to underwhelm

• Australian July 2025 leading index from Westpac - analysts at the bank are not impressed

The six-month annualised growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, ticked up to 0.12% in July from 0.01% in June.

Notes from analysts at WPAC:

• Leading Index growth rate ticks up to 0.12% in July.
• ‘Slow motion’ recovery continues to underwhelm.
• Main headwind coming from commodity price falls and higher AUD.
• Softer tone from labour market but other components lacking direction.

AUD/USD is little changed circa 0.6494.