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The Conference Board Leading Economic Index (LEI) for Australia increased 0.2 percent in May to 104.8 (2010 = 100), following a 0.3 percent decline in April, and no change in March.
At the same time, The Conference Board Coincident Economic Index (CEI) for Australia, a measure of current economic activity, increased 0.3 percent in May to 108.5 (2010 = 100), following a 0.1 percent increase in April, and a 0.3 percent increase in March.
The Conference Board LEI for Australia increased modestly in May and the strengths among its components remain widespread. As a result, the six-month growth rate of the LEI has improved considerably compared to six months ago. Meanwhile, the CEI for Australiacontinues to increase, and its six-month growth rate has also improved over the same time span. Taken together, the recent behavior of the composite indexes suggests that the current economic expansion should continue in the near term.
About The Conference Board Leading Economic Index® (LEI) for Australia
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.