Economic growth slowed in the second quarter, and the latest leading indicators suggest that momentum is continuing to weaken in most major economies, the Organization for Economic Co-operation and Development (OECD) said Thursday.
The Paris-based OECD says that its latest composite leading indicator readings show that the loss of growth momentum is likely to persist in the coming quarters in most major OECD and non-OECD economies.
For Canada, the OECD says indicator continues to point to growth moderating below trend. In Italy, China, India and Russia indicators continue to point to a slowdown, and the readings for France, and Germany point to continued weak growth, it reports.
Japan and the United States show signs of moderating growth, albeit above trend, the OECD notes. And, the OECD says indicators for Britain and Brazil tentatively point to a pick-up in growth, but remain below trend.
Separately, the OECD also reports that G20 GDP growth slowed to 0.6% in the second quarter, down from 0.7% in the first quarter. This marks the third consecutive quarter of slowing growth in the G20 area, but it says this masks diverging patterns across economies.
For Canada and France, growth rates were unchanged, it says. Growth accelerated in Brazil, China, Indonesia, South Africa, and Turkey. But, it slowed strongly in Australia, Japan, and Korea. And, it decelerated more moderately in Germany, India, Mexico, and the U.S.
The OECD says that GDP contracted for the third consecutive quarter in the UK, and for the fourth consecutive quarter in Italy. And, that it also contracted by 0.2% in the euro area.