The Australian economy took a step backwards in June, the latest survey from Westpac bank revealed on Wednesday as its leading economic index slid 0.22 percent.

That follows the 0.21 percent increase in May.

The outlook component climbed to -0.14 percent in June from -0.37 in May.

Supporting the index were gains in commodity prices, the share market and dwelling approvals - countered by deterioration in aggregate monthly hours worked.