Western Australia’s key industry group has predicted further strengthening in the Western Australian economy over 2012, after a sustained period of patchy conditions and global economic uncertainty.
Chamber of Commerce and Industry WA chief executive John Nicolaou said the Chamber’s Leading Index of WA economic activity, produced in collaboration with Westpac, rose 0.9 per cent for the month of December, for a 4 per cent gain on the previous year.
Mr Nicolaou said the main driver of the growth was greater confidence from WA businesses, the majority of which are looking to expand over the next 12 months.
“This has also seen an increase in demand for finance with total lending in WA growing by 2.4 per cent, which is the sixth consecutive month of increases,” Mr Nicolaou said in a statement.
“Chinese steel production also continues to positively contribute to the rise in the Westpac-CCI Leading Index of WA economic activity, despite easing over the last three months.”
Negative impacts on the index included continued softness in the housing sector and a fall in the total number of hours worked in WA.
“Despite these mixed signals, the improvement in the index provides a degree of confidence that 2012 will see the local economy strengthen.”
Westpac WA general manager Jay Watson said the bank was optimistic that confidence in the business community would continue to grow.
“It’s also encouraging to see activity improving outside of the mining and resources sector, with modest growth seen within the retail sector and food industries,” Mr Watson said.
