Westpac and the Melbourne Institute describe their Leading Index as a composite measure which attempts to estimate the likely pace of Australian economic activity over the next three to six months. After reaching a peak in early 2018, the index headed lower through 2018 and the first few months of 2019. It then recovered for a few months before turning down again.
The latest six month annualised growth rate of the indicator has increased from September’s revised figure of –1.01% to -0.91% in October. 
Westpac chief economist Bill Evans said, “Despite a slight improvement in the month, the Leading Index growth rate remains materially below trend and continues to point to weak economic momentum carrying well into 2020.”
Index figures represent rates relative to trend-GDP growth, which is generally thought to be around 2.75% per annum. The index is said to lead GDP by three to six months, so theoretically the current reading represents an annualised GDP growth rate of around 1.70% in early-to-mid 2020.