An index of the economy grew at an annualised rate of 8.7% in March, up from 7.7% growth in February. The index of where the economy is headed in the next three to nine months is compiled monthly by Westpac and Melbourne University's Institute of Applied Economic & Social Research.
Its coincident index, a broad measure of current economic activity, grew at an annualised rate of 3.7% in March, compared with growth of 3.6% in February. "While we do not use the index to provide point estimates for growth, it is safe to assume that the index is signalling even faster growth in the second half of 2010 than our forecast," said Westpac Chief Economist Bill Evans.