Australia's LEI holds steady at 114 in July: Conference Board

The Coincident Economic Index (CEI) for Australia rose by 0.2 per cent in July 2025 to 118.2 (2016=100), after rising by 0.1 per cent in June. Overall, the CEI grew by 0.7 per cent from January to July 2025; slightly more than half the 1.3 per cent increase over the previous six-month period.

Allen Li, associate economist at The Conference Board, said: “The LEI for Australia was unchanged in July after three consecutive months of increase. A rise in rural goods exports as well as mild positive contributions from most other components supported the Index. However, this was offset by a drop in building approvals, driven by a fall in apartment and multi-unit projects. There was also a softening in gross operating surplus in Q2, indicating volatility in certain sectors such as mining and commodities.

"The annual growth rate of the Australia LEI consolidated in July after a strong recovery started in April, suggesting a mild cooling of recent positive economic momentum. However, while global trade tensions could affect external demand, the outlook for the Australian economy remains positive, with lower interest rates and moderate inflation. The Conference Board currently expects Australia’s real GDP to strengthen somewhat and overall to grow by 1.7 per cent in 2025.”

The LEI provides an early indication of significant turning points in the business cycle and where the economy is heading in the near term. The CEI provides an indication of the current state of the economy.

ALCHEMPro News Desk (RR)