The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index slipped deeper into negative territory, declining to about -0.2% in April from -0.1% in March, according to a Westpac report on Wednesday.
The index forecasts the expected pace of economic activity compared with trend levels three to nine months into the future.
Australia is projected to face a prolonged period of sluggish, below-trend growth for the rest of the year and into early 2027, marking the first back-to-back below trend read since late 2024.
The last six months has seen the leading index growth rate swing 0.3 percentage points to about -0.2% from roughly +0.2% in November due to a sharp weakening in consumer sentiment.
The Westpac-Melbourne Institute Consumer Expectations Index has slumped 20% after reaching a four-year high late last year, per the report.