The latest composite leading indicator readings from the Organization for Economic Co-operation and Development suggest a possible turning point in European economic growth, and gathering momentum elsewhere.
The Paris-based OECD reports that its composite leading indicators, which are designed to anticipate turning points in economic activity relative to trend, suggest that the Euro area is approaching a potential turning point.
However, the OECD sees signs of divergence among the four major European economies. The CLIs for Italy and France point to continued sluggish economic activity, it says. For Germany and the UK, the CLIs continue to show signs of a positive change in momentum but these are weaker than in last month’s assessment, the OECD notes.
Elsewhere, the OECD says the CLIs are pointing to regained momentum in other major economies. Japan and the U.S. continue to show strong signs of positive momentum, it says. While economic activity remains around the long-term trend for Canada, it notes.
And, major emerging markets, Brazil, India, Russia and, in particular China, are showing stronger positive signals compared to last month’s assessment, it says.