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Australia's Leading Index Slips Deeper into Negative Territory

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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.

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