Growth to improve but mining peak looms AUSTRALIA'S economy has improved since the commodity price falls last year and is expected to improve further. The Westpac-Melbourne Institute Leading Index shows economic growth has bounced back, after virtually stalling in the first half of 2012. Westpac senior economist Matthew Hassan said the surge in commodity prices and the rally in share markets has helped the economy. However he added that the looming peak in mining investment will be a challenge. "That pace may be difficult to sustain over the course of 2013," he said. The Leading Index, which indicates the likely pace of economic activity three to nine months in the future, was 3.4 per cent, above its long-term trend of 2.7 per cent. The Coincident Index, which measures current economic activity, was 2.2 per cent, slightly below its long-term trend of 2.9 per cent. Westpac does not expect the Reserve Bank of Australia to cut the cash rate at its April 2 board meeting. Mr Hassan said he does expect a rate cut later in the year as economic conditions overseas deteriorate. Momentum in the non-mining sectors is insufficient to offset the increasing drag from mining investment, Mr Hassan said.