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The economy appears to have passed its low point and is on track for a slow, but real recovery, according to Westpac and the Melbourne Institute.
The pair’s Leading Index, which indicates the likely pace of economic activity three to nine months into the future, rose for the second consecutive month in April.
While still deep in negative territory the Index jumped to -3.5 per cent in April, a substantial improvement from March’s -5.1 per cent and the -6.1 per cent recorded in February.
Bill Evans, Westpac chief economist, said February’s result “now appeared to have been the low point in the growth cycle of the Index”.
“Its [the Index] current pace is still consistent with the Australian economy contracting in the June and September quarters but if this rate of improvement in the growth rate continues we can look to positive growth in the first half of 2010,” he said.
