The Westpac–Melbourne Institute Leading Economic Index edged lower 0.1% month-on-month in February 2026, following an upwardly revised flat reading in the previous month. Meanwhile, the six-month annualized growth rate, which indicates the likely pace of economic activity relative to trend three to nine months into the future, held at 0.08%, unchanged from January but down from more firmly positive reads seen late last year. Momentum remains slightly above average in early 2026 but is expected to fade as the central bank’s latest rate hike takes hold and the broader impact of the Middle East conflict emerges. Westpac projects Australia’s GDP growth to slow to 2% in 2026, down from 2.5% last year, underscoring a weakening trend below the nation’s long-term pace. On the monetary front, economist Matthew Hassan noted another 25bp rate hike is likely at the May meeting. source: Melbourne Institute

Leading Economic Index Australia decreased 0.10 percent in February of 2026 over the same month in the previous year. Leading Economic Index in Australia averaged 0.00 percent from 1960 until 2026, reaching an all time high of 0.69 percent in November of 2020 and a record low of -1.92 percent in April of 2020. This page provides the latest reported value for - Australia Leading Economic Index - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Australia Leading Economic Index - data, historical chart, forecasts and calendar of releases - was last updated on March of 2026.

Leading Economic Index Australia decreased 0.10 percent in February of 2026 over the same month in the previous year. Leading Economic Index in Australia is expected to be 0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Leading Economic Index is projected to trend around 0.20 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-02-18 12:00 AM
Westpac Leading Index MoM
Jan -0.1% 0.1% 0.2%
2026-03-18 12:00 AM
Westpac Leading Index MoM
Feb -0.1% 0% 0.2%
2026-04-22 01:00 AM
Westpac Leading Index MoM
Mar -0.1% 0.2%


Related Last Previous Unit Reference
Bankruptcies 1260.00 634.00 Companies Feb 2026
Building Capital Expenditure 2.30 2.30 percent Dec 2025
NAB Business Confidence -1.00 4.00 points Feb 2026
Business Inventories -0.10 -0.80 percent Dec 2025
Capacity Utilization 78.90 74.80 percent Feb 2026
Passenger Car Sales 12642.00 13365.00 Units Feb 2026
Changes in Inventories 657.00 -1801.00 AUD Million Dec 2025
Composite Leading Indicator 100.75 100.72 points Feb 2026
Company Gross Profits 133922.00 126530.00 AUD Million Dec 2025
Corruption Index 76.00 77.00 Points Dec 2025
Corruption Rank 12.00 10.00 Dec 2025
Industrial Production 2.70 0.10 percent Dec 2025
Industrial Production Mom 1.60 -0.20 percent Dec 2025
Ai Group Industry Index -1.50 -12.30 points Feb 2026
Ai Group Services Index 1.10 -10.80 points Feb 2026
Ai Group Construction Index -8.20 4.60 points Feb 2026
Ai Group Manufacturing Index -15.60 -19.00 points Feb 2026
Westpac Leading Index MoM -0.10 0.00 percent Feb 2026
Manufacturing Production 1.10 -1.90 percent Dec 2025
Mining Production 3.80 0.40 percent Dec 2025
New Orders 35.00 23.00 points Dec 2025
Plant Machinery Capital Expenditure -1.70 11.20 percent Dec 2025
Private Capital Expenditure 0.40 6.40 percent Dec 2025
Small Business Sentiment -2.00 -8.00 points Sep 2025
New Vehicle Sales 90712.00 87092.00 Units Feb 2026


Australia Leading Economic Index
The Westpac-Melbourne Institute Leading Index of Economic Activity combines a selection of economic variables that typically lead fluctuations in economic activity into a single measure that provides a reliable cyclical indicator for the Australian economy. The index includes the following components: S&P/ASX 200, dwelling approvals, US industrial production, RBA Commodity Prices Index (A$), aggregate monthly hours worked, Westpac-MI CSI expectations index, Westpac-MI Unemployment expectations index, yield spread (10Y bond – 90D bill). The index has a base value of 100 as of 1996.
Actual Previous Highest Lowest Dates Unit Frequency
-0.10 0.00 0.69 -1.92 1960 - 2026 percent Monthly
1996=100

News Stream
Australia Leading Index Inches Down
The Westpac–Melbourne Institute Leading Economic Index edged lower 0.1% month-on-month in February 2026, following an upwardly revised flat reading in the previous month. Meanwhile, the six-month annualized growth rate, which indicates the likely pace of economic activity relative to trend three to nine months into the future, held at 0.08%, unchanged from January but down from more firmly positive reads seen late last year. Momentum remains slightly above average in early 2026 but is expected to fade as the central bank’s latest rate hike takes hold and the broader impact of the Middle East conflict emerges. Westpac projects Australia’s GDP growth to slow to 2% in 2026, down from 2.5% last year, underscoring a weakening trend below the nation’s long-term pace. On the monetary front, economist Matthew Hassan noted another 25bp rate hike is likely at the May meeting.
2026-03-18
Australia Leading Index Muted
The Westpac–Melbourne Institute Leading Economic Index edged lower 0.1% month-on-month in January 2026, reversing a 0.1% rise in the previous month. More notably, the six-month annualized growth rate slowed sharply to 0.02% from 0.44% in December, indicating that the slightly above-trend momentum seen in the second half of 2025 has faded in early 2026. Despite the softer signal, Westpac still expects GDP growth to hold at 2.5% this year, close to its estimate of trend growth and broadly consistent with the index’s latest reading, which points to steady rather than accelerating activity. On monetary policy, while a near-term follow-up cash rate hike cannot be ruled out, the board is more likely to adopt a cautious stance, waiting for additional data before tightening further. The central bank’s next meeting is scheduled for March 16–17.
2026-02-18
Australia Leading Index Inches Higher
The Westpac–Melbourne Institute Leading Economic Index for Australia edged up 0.1% month-on-month in December 2025, following a flat reading in the previous month. Meanwhile, the six-month annualized growth rate rose to 0.42% from 0.20% in November, suggesting that the economic recovery seen through 2025 is carrying into early 2026. However, the improvement remains tentative, as the index is only modestly above its long-run trend and had stalled through the middle of last year. Head of Australian Macro-Forecasting Matthew Hassan noted that a clearly strong growth pulse, typically signaled by Leading Index growth above 1%, still appears some way off. Westpac expects the Australian economy to grow 2.4% this year. On the monetary front, the central bank is widely expected to keep the cash rate unchanged at its February meeting. Still, policymakers remain alert to inflation risks and have laid the groundwork for potential rate hikes should price pressures re-emerge.
2026-01-20