A forward-looking index of Australian economic growth declined in June to an annualized rate of 2.0 percent.

The index, published by Westpac Bank and Melbourne University, shrank from a reading of 2.4 percent in May.

The index, which looks at where the economy is headed three to nine months ahead, registered a reading of 256.3 in June, compared to 256.0 in May.

Falling equities prices, tighter liquidity and weak home loan approvals combined with weak U.S. industrial production to reduce the leading index growth estimate.

The coincident index, measuring current economic activity, showed an annualized growth rate of 2.4 percent in June, down from May`s reading of 2.7 percent.

`This is the slowest growth rate of the index since July 2001,` said Westpac Chief Economist Bill Evans. Evans added that signals this week from the Reserve Bank of Australia virtually assure that that interest rate cuts are imminent.


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