The latest composite leading indicator (CLI) readings from the Organization for Economic Co-operation and Development point to a likely economic recovery for Canada and other major countries.

The OECD reports that the CLIs for October continue to point to a recovery in OECD economies; with the indicators for Canada, France, Italy, Germany and the UK pointing more strongly to recovery than in last month’s assessment.


“Financial components and business confidence are the main drivers to the CLI’s performance in these countries,” it says. Although it points out that this signals a stronger likelihood of recover, not that the recovery itself will necessarily be robust.

The CLI for the OECD area increased by 1.0 point in October and was 5.7 points higher than in October 2008. The CLI for the US increased by 1.0 point in October, 3.9 points higher than a year ago. The Euro area’s mindicator increased by 1.3 point in October, 8.8 points higher than a year ago. Japan increased by 1.2 point in October, 2.2 points higher than a year ago. Canada increased by 0.8 point in October, 6.4 points higher than a year ago.

All major non-OECD economies are also in a recovery phase, the group notes. The CLI for China increased 0.2 point in October 2009, 5.7 points higher than a year ago. The readings for India, Russia and Brazil were all up, too.

IE