Outlook pointing to 3% growth: Westpac

A rise in the Westpac-Melbourne Institute leading index last month indicates steady economic growth this year.

A new survey indicates the Australian economy is on track to continue its growth rate of around three per cent this year.

The Westpac-Melbourne Institute leading index, which indicates the likely pace of economic activity three to nine months into the future, rose to 0.2 per cent in August, from 0.01 per cent in July.

"The leading index is clearly signalling that the economy is likely to continuing growing around its long run trend rate of about three per cent a year," Westpac chief economist Bill Evans said.