The Westpac-Melbourne Institute Leading Index suggests the economy is on the rebound as commodity and equity prices rally.
The index grew by 4.2 per cent in February up from 2.7 per cent recorded in September and much higher than the long term trend rate of 2.8 per cent.
The index estimates the pace of economic activity for the next one to three quarters.
Matthew Hassan senior economist at Westpac says the results suggest economic momentum has clearly lifted since June 2012.
(It) points to moderately above trend growth in the first half of 2013. Our chief concern though is how well this will be sustained through the year, especially as the peak in mining investment approaches.