Australia economic growth low

 Australia is heading for below trend economic growth in the second half of 2016, but that would not necessarily trigger a rate cut.

The Westpac and Melbourne Institute Leading Index of Economic Activity fell 0.12 points to 96.59 in March, signalling weaker economic growth in the coming months.

It’s the second consecutive decline for the index, which indicates the likely pace of economic activity three to nine months into the future.

“The Leading Index continues to point to a material loss of momentum and growth pulling back to below trend rates through the middle of the year,” Westpac Senior economist Matthew Hassan said.

The main factors weighing on the index were commodity prices and weaker US industrial production. 

– AAP