Growth Slowing?

Further justification of the RBA's pause stance came yesterday with the Westpac-Melbourne Institute leading Index of Economic Activity indicating a slowing in economic growth.

Activity was positive 7.6 per cent in April, well above its long-term trend of three per cent but moderated from March's 12-and-a-half-year high of 8.8 per cent. This is the first slowing after 10 consecutive months of sharp acceleration.

The index indicates the likely pace of economic activity three to nine months into the future.