The ANZ Truckometer heavy traffic index has gone up 1.4% for the month of April.
However, ANZ chief economist Sharon Zollner says the heavy traffic index is “losing momentum” overall.
She says it might be starting to back up the light traffic index’s earlier prediction of softer GDP growth for the mid-year.
The light traffic index fell 0.5% month-on-month and the level has flattened off in recent months.
“The correlation of the light traffic index to GDP growth has not been particularly close lately, and it is worth noting that annual growth remains strong.
“We are therefore not reading too much into it at this stage. However, the loss of momentum in the heavy traffic index provides a degree of corroboration, and further weakness would be concerning,” Zollner says.
