AUSTRALIA LEADING INDEX CONTINUES RISE IN DECEMBER
Westpac Banking Corp and the
Melbourne University Institute of Applied Economic and Social
Research said their leading index of Australian economic
activity rose for the ninth successive month in December.
    The index rose to 134.1 (base 1980) from 129.8 in November
and 122.8 a year earlier, the Westpac-Institute report said.
    Annualised, it rose 13 pct in December against seven pct in
November and one pct a year earlier, based on the ratio of the
latest index to the average over the previous 12 months.
    The report said the index is now 12 points or 9.8 pct above
its trough in March 1986.
    Westpac's chief economist Bob Graham said the consistent
upward trend in the leading index emphasised the need for a
tough mini-budget in May. "An untoward increase in consumption
spending before the balance of payments improves would have
disastrous consequences," he said.
    The coincident index also rose an annualised three pct in
December against zero movement in November and a seven pct rise
a year earlier, Westpac and the Institute said.
    They said this index continued to show the current
recession is shallow and is more likely to involve a slowing in
real growth than an absolute fall in economic activity.
 REUTER
