Australia: Oct MI Leading Index preview - Westpac

According to the analysts at Westpac, the October month MI Leading Index is likely to come in weaker once again following September’s -0.92%.

Key Quotes:

“The Leading Index growth rate fell more materially below trend in September, to –0.92% from –0.24% in August. The signal indicates growth is likely to remain below trend through the first half of 2020.

The October update looks likely to see another weak read. It will include softer component updates for the ASX200; the Westpac-MI Unemployment Expectations Index and total hours worked. It will also see more weak reads on US industrial production and commodity prices (-2% in AUD terms vs -3.7% last month). These will be partially offset by firmer reads for the Westpac-MI Consumer Expectations Index, dwelling approvals and a widening yield spread.”