Economy moderating, but still strong: index

The Australian economy showed signs of moderation in April, but remained very strong and well above its long-term trend, according to Westpac and the Melbourne Institute.

The Westpac-Melbourne Institute Leading Index, an indicator of the likely pace of economic activity three to nine months in the future, was a positive 7.6% in April.

While this is down from a 12-year high of 8.8% in March, it is still significantly up from its long term trend of 3%.

International developments have been the main driver for this unseasonal growth, but some domestic factors, including the all ordinaries index, overtime worked and productivity, are serving as a drain on potential Index growth.