Leading economic indicators continue to point to divergent growth patterns, reports the Organization for Economic Co-operation and Development (OECD).
The Paris-based OECD said Monday that the latest composite leading indicators (CLIs), which are designed to anticipate turning points in economic activity, continue to point to divergence between economies.
The CLIs for Japan, the United States and Russia continue to signal improvements in economic activity, it says. However, it adds that a deceleration in readings for these countries over the last four months “provides tentative signs that growth may moderate in the near term”.
The readings for Canada, Germany, the United Kingdom, and the Euro Area as a whole, continue to point towards economic activity that is slightly below long-term trend, it notes. And, in France and Italy, the leading indicators continue to point to sluggish economic activity.
Moreover, the OECD reports that the assessment for China and India has changed significantly since last month. For both countries, the CLIs now point towards economic activity below long-term trend, it says. Whereas Brazil’s leading indictaors continue to point towards a turning point with economic activity returning towards long-term trend, albeit with a weaker intensity.