Solid growth still likely in 2017: Westpac

The Westpac-Melbourne Institute Leading Index shows that the economic outlook has been above or at trend for six months.

Economic growth of 3.0 per cent is still likely this year despite the outlook being slightly more downbeat in January, Westpac says.

The Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, fell to 1.30 per cent in January, from 1.36 per cent in December.

Westpac chief economist Bill Evans said the index, being at or above trend for six consecutive months, indicated economic growth in the current calendar year will be close to the Reserve Bank's forecast of 3.0 per cent.