Truckometer suggests economy 'rapidly losing momentum'
Stronger economic growth is likely in Q4 but will probably taper off early next year, the latest ANZ Truckometer indicators show.
The Truckometer analyses data from the movements of light and heavy vehicles, using the results to predict economic activity six months out.
Heavy vehicle traffic tends to indicate current economic activity, while flow for lighter vehicles is a good indicator of future growth or decline.
The latest report for October shows the heavy traffic index rose 4.5%, suggesting a rise in GDP for Q4.
Light vehicle traffic rose 1.5%, also indicating some improvement in economic growth in Q4.
Put together, however, the results suggest the "economy is losing momentum fairy rapidly from its current respectable 2.5% pace", the report says.
"The headwinds the economy is facing would make such as slowdown quite understandable."
It says that, based on the light vehicle traffic index, growth will be considerably slower into early next year, compared to the relatively strong growth seen in the first half of this year.
The latest results confirm the trend identified in last month's Truckometer.