Fed: Next year's slowdown could be softer than expected

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Fed: Next year's slowdown could be softer than expected

Next year's economic slowdown may be softer than first thought, with new figures pointingtowards stronger than expected growth.

The Westpac-Melbourne Institute leading index of economic activity improved 2.7 percentagepoints on the back of the surge in housing approvals and an improvement on the Australianshare price index.

After recording minus 1.4 per cent in September, the index was 1.4 per cent in October.

Westpac's general manager economics BILL EVANS says the turnaround in the index pointstowards a softer than expected slowdown early next year.

But he says there are still strong indicators of the economy slowing next year.

AAP RTV sw/wz/rp

KEYWORD: ECONOMY (CANBERRA)