The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months into the future, posted an annualised growth rate 6.7 per cent in October.
The growth rate, released on Wednesday, is well above its long-term trend pace of 3.1 per cent.
However, the annualised growth rate of the coincident index, which shows the current pace of economic activity, was 0.7 per cent, below its long-term trend of 2.8 per cent.
Westpac chief economist Bill Evans said the bank continued to be surprised by the pace of recovery of the leading index.
'Over the last six months, growth has accelerated from 5.3 per cent in May to the current 6.7 per cent,' Mr Evans said in a statement.
'This rapid turnaround represents the fastest reversal in the growth rate of the leading index since the economy bounced out of recession in the mid 1970s.'
The sharp recovery in the growth rate was consistent with Westpac's view of the economic outlook, he said.