MNI: Australia Leading Index Signals Improved Growth Momentum

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

November published Wednesday.

                                                         November  October

--------------------------------------------------------------------------

Leading Index                                               97.82    97.72

6-Mo Annualized Deviation From Trend, percentage points     +0.69    +0.51

     FACTORS: The leading index rose further in November pointing to above-trend

momentum for the third straight month and signaling further easing in headwinds

to growth that were evident in the middle of the year. However, despite the

improved momentum, the growth signal remains weaker compared with +1.12% average

over the six months to May.  

     The main shifts in component contributions from -0.41% in June to the

current +0.69% have come from rise in commodity prices in Australian dollar

terms, increase in dwelling approvals, increase in consumer sentiment

expectations index, fall in unemployment expectations, a steeper yield curve and

rise in local share index. 

     TAKEAWAY: According to Westpac chief economist Bill Evans despite easing in

headwinds to growth, there are still key negatives around housing, household

incomes and the consumer which are likely to contain 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$$$$]