WEAK commodity prices and lacklustre growth in the US are likely to weigh on the Australian economy for the rest of the year. 
That is the outlook painted by the Westpac and Melbourne Institute's Leading Index, which has risen but continues to point to below-average growth in the second half of 2016.
The index clocked in at a negative reading of 1.08 points for   April, a slight improvement on the negative 1.51-point reading in   March.
Westpac chief economist Bill Evans said that in recent months, a deterioration in components associated with the Australian labour market had contributed to further weakness.
The index has now been in minus territory for the past year and is sending a more negative signal about the economy than the projections issued by Westpac economists and official forecasters.The Reserve Bank expects 3 per cent growth in GDP this year, while the government forecasts 2.5 per cent growth.