The WA Chamber of Commerce and Industry says a new study suggests the state's economic recovery is still patchy.
The Genesys Wealth Advisers - CCI Leading Index of WA Economic Activity, fell for the third consecutive month.
The index fell by just over 1 per cent during June, but remains almost 12 per cent higher than at the same time last year.
The consecutive falls follow a record high in March.
The CCI said the index provides useful insight into the future performance of the local economy, by combining seven leading economic variables, which when analysed carefully, can predict cyclical turning points in the WA economy.
CCI chief economist John Nicolaou said, "There have been several recent events that have acted as a drag on business confidence."
"Volatility in the local share market, increased interest rate rises and business costs, the proposed mining tax and concerns about the global economic recovery have all been factors.
"But the local economy remains strong and is tipped to strengthen further in the months and years ahead."
"Recent events, such as the announcement of the mining tax, highlight that the market does not like unexpected events," said Malcolm Davis, authorised representative of Genesys Wealth Advisers.
"The current reporting season in both the US and Australia produced no real surprises, and recent data released in America is creating some optimism about a possible recovery in the US economy.
"Now we finally have a Prime Minister, hopefully we will see the index turn over in the next few months," he said.
