A composite economic indicator published by Westpac Banking Corporation and the Melbourne Institute that forecasts the likely pace of Australian economic activity three to nine months ahead. The index combines several forward-looking components including yield curve spread, share prices, dwelling approvals, business expectations, and commodity prices. A positive reading suggests above-trend growth ahead, while a negative reading signals a potential slowdown.
Example
“The Westpac-MI Leading Index turned negative for the second consecutive month, reinforcing expectations that Australian GDP growth would slow in the second half of the year.”