Dark clouds forecast for economic growth

Worsening economic conditions are likely to slow consumer spending next year, economists say. (James Worsfold/AAP PHOTOS) (AAP)

The economy is tracking towards a slower pace of growth next year and possibly a patch of stagnation in the back half of 2023.

The Westpac-Melbourne Institute leading index - which indicates the likely pace of economic activity three to nine months into the future - has recorded the fourth consecutive month with a negative growth rate.