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KEY POINTS

 Both the Heavy Traffic Index and the Light Traffic Index lifted in June. The upward trend has flattened out somewhat for the Heavy Traffic Index, but the Light Traffic Index is back in the fast lane.

 Despite the strong increase in the Heavy Traffic Index in the month of June it suggests weaker economic growth in Q2 than was seen in Q1. That said, the Heavy Traffic Index has been volatile recently, likely reflecting mixed fortunes in the agriculture sector.

 After a dip in May the Light Traffic Index jumped again in June, suggesting strong momentum in the economy is set to continue. Annual growth in the 3-month average of this index is the strongest since 2003 – strong population growth will no doubt be a factor here.

 By the numbers: the Heavy Traffic Index1 rose 4.7% m/m (-0.2% m/m on a 3-month rolling average basis – levels charted below) in June. The Light Traffic Index2, which leads growth in the economy by six months, lifted 2.8% m/m (+0.6% m/m, 3-month average).

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