MNI: Australia Leading Index Growth Momentum Slows in Jan

     SYDNEY (MNI) - From Westpac-Melbourne Institute's Leading Index for January

published Wednesday.

                                                         January  December

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Leading Index                                              97.79     98.03

6-Mo Annualized Deviation From Trend, percentage points    +0.73     +1.39

     FACTORS: The leading index fell in January, reversing the increase seen in

December with the change in the last two months mostly caused by dwelling

approvals. According to Westpac, after contributing 0.33% points to growth in

December, approvals fell sharply in January to subtract 0.21 points from growth.

Still, the index is pointing to above trend growth in the early part of 2018.

     TAKEAWAY: Westpac chief economist Bill Evans said there are still key

negatives around housing, household incomes and the consumer that are likely to

challenge the sustainability of any upswing in 2018.

     COMMENTS: Evans continues to expect the Reserve Bank of Australia will keep

the cash rate on hold in 2018 and 2019.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

[TOPICS: MTABLE,MALDS$,M$A$$$,M$L$$$,MT$$$$]