A weak Aussie economy to continue: report

Australia's economy is expected to continue its weak trend for the rest of this year and into 2015, dragged down by falling commodity prices, an new economic report revealed on Wednesday.

The Westpac Melbourne Institute Leading Index, which indicates the likely pace of economic growth over the next three to nine months, fell from -0.75 percent in July to 0.90 percent in August.

"This is the seventh consecutive month where the growth rate in the Index has been below trend. The index continues to indicate that we can expect growth in the Australian economy to stay below trend in the second half of 2014 and into 2015," Westpac's chief economist Bill Evans said in a statement.

The index is made up of indicators, such as the local sharemarket performance, consumer sentiment, commodity prices, dwelling approvals, United States industrial production, and employment measures.

Evans said falling commodity prices had intensified their drag on the economic growth rate, and this meant that the Reserve Bank of Australia would not change interest rates until the second half of next year.

"Westpac expects that, with our expectation of a more favorable economic environment than is anticipated by the Reserve Bank, the next move in rates will be a tightening but not until the second half of 2015, with August currently appearing to be the date for the first move," Evans said.