Westpac-Now points to quarter-over-quarter gross domestic product (GDP) growth of around 0.4% in the March quarter, with a range of 0.3% to 0.55%, Westpac said in a Friday report.

This was below Westpac's second estimate of 0.6% quarter-over-quarter growth and the 0.8% quarter-over-quarter growth recorded in the December quarter.

The bank's central project has year-ended growth slowing to 1.6% year-over-year in the June quarter, per the report.

The Westpac Monthly Activity Index fell over the three consecutive months to the end of April, and the index recorded its sharpest quarterly decline since May 2023.

The index declined to levels seen in the first quarter of 2025, when the central bank began cutting the cash rate, suggesting Australia's cyclical upswing has come to an end.

The bank's framework points to growth stalling at just 0.1% quarter-over-quarter in the June quarter. The longer the Middle East conflict persists, alongside other sources of uncertainty, the greater the risk of a contraction in the June quarter.