The latest leading indicator readings suggest that economic growth is gathering some steam, but the resurgence isn’t being enjoyed in all major economies.
The Paris-based Organization for Economic Co-operation and Development says that its composite leading indicators “point to regained momentum in the OECD area but with divergence between economies”.
Compared to last month’s assessment, the OECD reports that the CLIs for Japan and the United States show stronger signs of improvements in economic activity, and are pointing towards an expansion. Additionally, the CLI for the UK, and major emerging economies, in particular China, where the assessment points to above trend growth, are also showing stronger positive signals compared to last month.
Yet, in the Euro area, the CLIs for France and Italy continue to point to sluggish economic activity below long term trend. The CLIs for Germany and most other Euro area economies show slightly more positive signals, it notes.
For Canada, economic activity looks to be about on pace with long-term trends.