The global economy appears to be on track for a soft landing, says BCA Research.

“Global industrial activity is in the early stages of slowing, but downside risks to the world economy are limited,” it says in a research note.

BCA reports that its Global Leading Economic Indicator ticked up in September, the first rise in six months. “Though actual industrial production growth will continue to slow well into 2007, the positive GLEI reading supports our view that a global soft landing is likely,” it says. “Encouragingly, both the U.S. and world ex-U.S components crept higher.”

“Falling bond yields and the earlier decline in oil prices are helping to provide support while the U.S. housing sector adjustment plays out and China tries to tame its capital spending boom,” it says.

“The global growth slowdown in 2007 should prove shallow and pave the way for another business cycle upswing beginning in the second half,” it predicts.