A private sector barometer of Australia's future economic growth posted a significant decline in September.
The Leading Index published by Westpac Bank and Melbourne University's Institute of Applied Economic and Social Research showed growth at an annualized rate of 1.1 percent in September, far below the 3.5 percent growth reading a month earlier.
The figure was also well below the index's long-term average of 3.9 percent.
"This is a very disturbing fall in the growth rate of the leading index," Bill Evans, Westpac's chief economist, said Wednesday. "It is consistent with Westpac's view that growth in the first half of 2009 will be barely positive, with a decent risk that the first two quarters of growth in 2009 could be negative."
September's decline was the largest percentage point drop between two months since the mid 1980s, Westpac said, even sharper than what was seen in the recession of 1990-91.
The report said commercial construction and mining investment will support growth in 2009 as work continues on current projects, but approvals for new projects are down sharply as business confidence and credit availability erode.
The survey's coincident index, which measures current economic activity, registered 1.6% in September, down from 1.8% in August and below the long term average of 3.6 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.