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The already rampant Australian economy looks set for further growth, underpinned by consumer spending and strong employment growth, new figures show.
The Westpac-Melbourne Institute Leading Index of Economic Activity, released today, increased by 1.5 points in August, taking the annualised growth rate of the index to 5.6 per cent.
The index, which indicates the likely pace of economic activity three to nine months into the future, remained above its long term trend of 4.3 per cent in August.
The annualised growth rate of the coincident index, meanwhile, was 4.5 per cent -- above its long term trend of 3.7 per cent.
Westpac chief economist Bill Evans said the August result surprised on the upside after the previous month's result suggested the index may have been on a sustained downward path after what had been a long period of robust growth.
"However, this month's reading points to clear recovery in the growth profile," Mr Evans said.
"The recent low point in growth was well above long term trend, and the subsequent reacceleration points to a sustained period of strong growth in the Australian economy."
- AAP
