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Leading index remains strong - MacroBusiness

MacroBusiness Access Subscriber Only Content Westpac with the note: The growth rate of the Leading Index continues to point to above trend growth in 2021. Westpac is forecasting growth of 4.5% in 2021 largely driven by the consumer who is expected to contribute three of those percentage points. The reopening of the economy; cashed up households; and an eleven year high in Consumer Sentiment all point to strong spending. The housing market is booming. Westpac expects dwelling price growth of 15% in 2021 along with surging dwelling construction. The Treasurer announces the Federal Budget on May 11. The Budget is unlikely to focus on fiscal repair. Despite recent encouraging progress, the unemployment rate is too high and well above the full employment level which is likely to be below 4%.

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