Survey shows faster than expected recovery

The Westpac - Melbourne Institute Leading Index of economic activity climbed 2 per cent to 5.8 per cent in September.

That is a rapid rebound from a low of minus 5.4 per cent in May.

The monthly index forecasts the pace of economic activity into the future.

Westpac expects economic growth to increase to 4 per cent next year, which is ahead of both the Reserve Bank and Federal Treasury forecasts.

Westpac's chief economist Bill Evans says it is the index's fastest turn-around since the economy bounced out of recession in the 1970s.

"We're certainly comfortable with our view that the economy will grow by four per cent next year," he said.

"Clearly it also has implications for interest rates, if the economy is growing at that sort of pace next year then interest rates will certainly need to rise."

Read more here: http://www.abc.net.au/news/stories/2009/11/18/2746254.htm