Truckometer - A Dippy December
Posted: 16-Jan-2020 | Dave Mcloed
In December, the Light Traffic Index fell 2.0% month on month, while the Heavy Traffic fell 2.5% month on month, this is on top of a fall in November.
Annual growth in light traffic is still lifting but that of heavy traffic has now, according to the report, plateaued. It goes on to say that the Light Traffic Index is the better economic indicator of the two; it suggests annual GDP growth will bounce around the 2% mark into the middle of next year.
The two ANZ Truckometer indexes reflect economic activity. The Light Traffic Index gives an indication of where GDP growth is headed in six months' time, while the Heavy Traffic Index is real-time. They both agree that the slowdown in economic momentum may be finding a floor, consistent with economic forecasts.
But that being said, the recent lift in annual growth in the two indexes is supportive of the view that annual GDP growth is set to bottom out around the current level of 2%.