The November result has been revised down to +0.05% m/m (from +0.1%) which takes a bit of the shine off the better December result

Westpac summary comments:

  • This is a very strong above trend reading and, following the solid results in October and November, points to solid above trend growth in the early part of 2018.
  • However, in our view there are still key negatives around housing, household incomes and the consumer which are likely to challenge the sustainability of any upswing in 2018.

The six month annualised growth rate in the Westpac-Melbourne Institute Leading Index,

  • jumped from +0.66% in November to +1.41% in December

(The six month annualised growth rate indicates the likely pace of economic activity relative to trend three to nine months into the future)