Sydney, March 21 (Bloomberg) -- An index of Australia's leading economic indicators fell for the first time in seven months in January, suggesting economic growth is slowing, a survey showed. The Conference Board's index -- a gauge of economic activity in the next three to six months -- fell 0.1 percent following a 0.5 percent gain in December. Australia's economy will slow this year because of a slump in home building and as drought and a global slowdown crimp exports, according to economists and the central bank. Consumer confidence fell to a two-year low in March, building approvals dropped 2.1 percent in January and job vacancy advertisements fell 3.5 percent in February. ``A sharp drop in building approvals, along with weakening rural goods exports, were responsible for January's decline'' in the index, the Conference Board said. ``A few more months are needed in order to tell whether the upward trend in the leading index is reversing.''
The New York-based Conference Board is a research group with more than 3,000 companies as members in 67 countries. It began compiling an index for Australia in 2001, having compiled a U.S. leading index since 1995. The Australian index uses both previously reported economic statistics and estimates of economic indicators such as the money supply, stock prices, exports and building approvals to predict the likely pace of growth in coming months. The index of coincident indicators -- a gauge of current economic activity -- rose 0.4 percent in January after being unchanged in December. //www.quote.bloomberg.com