The Westpac–Melbourne Institute Leading Economic Index fell 0.1% month-on-month in September 2026, after remaining flat for the previous two months, marking its first decline since May. Meanwhile, its six-month annualised growth rate held at -0.03%, unchanged from August. The index suggests economic momentum remains slightly below trend heading into late 2026 and early 2027, with growth stabilising at a modest pace rather than stalling. However, higher fuel prices and the RBA’s September rate hike are still filtering through the economy and could weigh on near-term growth. Westpac expects Australia’s economy to expand 1.5% in calendar 2026, below its long-run trend. “For now, it suggests the economy has been stuck in a bit of a holding pattern over the last two years,” said Matthew Hassan, Westpac’s head of Australian macro-forecasting.