Economic recovery earlier than expected
The Westpac-Melbourne Institute Index revealed a slight increase in economic growth in May, suggesting the worst of the downturn in Australia could be over.
The index, which predicts the pace of economic growth three to nine months into the future, recorded -3.9 percent in May compared to -4.1 percent in April.
Westpac chief economist Bill Evans said the index has been increasing modestly since hitting its lowest point in February.
”The May reading supports the reasonable expectation that we have passed the worst although the Index is still contracting on a six-month annualised basis.”
Evans said the growth rates are a positive sign that the economic climate may experience an earlier recovery than expected.
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