The Westpac-Melbourne Institute index of economic activity indicates the Australian economy strengthened by 1.2 points (0.5 per cent) during October, The Age reports.
This increase takes the economy's annual growth rate to 5.5 per cent; a movement economists say indicates a long term trend of 4.2 per cent growth over the next three to nine months.
Westpac says that due to its impact on inflation, continued growth will put pressure on the Reserve Bank to increase interest rates this year, possibly as soon as early February.
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