FX.co ★ Australia Leading Index Signals Steady Trend Growth Ahead

In September 2025, the Westpac-Melbourne Institute Leading Economic Index for Australia showed no change, following a 0.1% decrease the month prior. The six-month annualized growth rate experienced a slight uptick, climbing to 0.04% from -0.16%. While these figures suggest a slowing momentum when compared to the beginning of the year, the economy is still expected to achieve approximately trend-level growth as we enter 2026. Growth had previously peaked at 0.83% in February but has since decreased to nearly zero by June, maintaining levels indicative of trend-paced activity. Westpac forecasts that the Australian economy will grow by about 2% in 2025, with expectations of it returning to its trend growth rate in the following year.