A leading economic index for Australia turned lower again on June, the latest survey from the Conference Board showed on Tuesday, slipping 0.2 percent.
That follows the 0.2 percent increase in May.
Large negative contributions from share prices and building approvals were the primary drivers of the decline. Between December 2014 and June 2015, the leading economic index increased 0.9 percent (about a 1.7 percent annual rate), an improvement after no change over the previous six months. Moreover, the strengths among the leading indicators have remained more widespread than the weaknesses in recent months.
Four of the seven components increased in June, including the sales to inventories ratio, the yield spread, gross operating surplus and money supply.
Share prices, building approvals and rural goods exports declined in June.
The coincident index added 0.2 percent in June, unchanged from the previous month following a downward revision from 0.3 percent in May.
The coincident economic index increased 1.1 percent (about a 2.2 percent annual rate) in the six-month period ending June 2015, down slightly from 1.2 percent (about a 2.5 percent annual rate) over the previous six months. Meanwhile, real GDP grew by 3.8 percent (annual rate) in the first quarter of 2015, up from 1.9 percent (annual rate) in the final quarter of 2014.
All four of the components increased in June, including household gross disposable income, employed persons, industrial production and retail trade.
Taken together, the recent behavior of the composite indexes suggests that the current economic expansion should continue in the near term.
The material has been provided by InstaForex Company – www.instaforex.com