Summary points from WPAC’s report:
- Growth rate slows to 0.40% from 0.56%
- Still indicating above trend growth momentum near term
- Slowing pace points to economic slowdown later in 2022
- The June Index is capturing the very early impact of central bank tightening cycles.
- Westpac currently expects growth to slow from 4% in 2022 to 2% in 2023. That outlook is highly dependent on the profile for the Reserve Bank’s tightening cycle.
- Despite the recent slowing, the Index growth rate is still up on the start of the year.