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Australia Leading Economic Index Drops 0.1% in September as Growth Remains Below Trend

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AULEI-0.1000 —

Australia's Leading Economic Index declined by 0.1% month-on-month in September 2026, marking its first drop since May. The index had remained unchanged during the previous two months. Meanwhile, the six-month annualized growth rate held steady at -0.03%, matching the figure recorded in August.

The latest figures indicate that Australian economic momentum is running slightly below its historical trend heading into late 2026 and early 2027. Economic growth appears to be stabilizing at a subdued pace rather than experiencing a sharp slowdown. Estimates project full-year expansion of 1.5% for 2026, pointing to an economy that has effectively remained in a holding pattern over the past two years.

Looking ahead, headwinds could further strain near-term growth. Higher fuel prices and the lagged impact of the central bank's September interest rate increase continue to spread through the economy, presenting ongoing risks for overall expansion.

Key points

  • The Westpac-Melbourne Institute Leading Economic Index fell 0.1% month-on-month in September 2026, its first drop since May.
  • The six-month annualized growth rate remained unchanged at -0.03%.
  • Full-year growth for Australia's economy is expected to reach 1.5% in 2026, remaining below its long-term trend.
  • Rising fuel costs and recent interest rate increases continue to filter through the economy and may weigh on near-term growth.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

How much did the Australia Leading Economic Index change in September 2026?

The Australia Leading Economic Index fell 0.1% month-on-month in September 2026, following two consecutive months of flat performance.

What is the growth outlook for Australia's economy in 2026?

Australia's economy is expected to expand by 1.5% in 2026, which is below its long-run historical trend.

What factors are affecting Australia's economic growth heading into 2027?

Higher fuel prices and recent interest rate hikes are filtering through the economy, keeping economic growth slightly below trend heading into late 2026 and early 2027.