The new Monthly Leading Indicator of Employment provides advance warnings of whether employment is likely to grow faster or slower than its long-term trend rate of growth.
The new Indicator now contains five components—two international series and three domestic series. The changes to the Indicator largely reflect an inclusion of international components which were demonstrated through Australia’s experience of the global recession to be significant factors. The components of the new Indicator are:
- the Purchasing Managers’ Index for Manufacturing Output in China from the National Bureau of Statistics of China
- the US Yield Difference (the difference between long-term and short-term interest rates on Government (Treasury) securities in the USA)
- the NAB Forward Orders Index.
- the Westpac-Melbourne Institute Consumer Sentiment Index
- the Westpac-Melbourne Institute Leading Index of Economic Activity