Global Economic Indicators Strong Says OECD

The economies of most industrialized countries should keep expanding, with China and India leading the way, OECD leading indicators that were released on June 9 showed. The U.S. economy could be slowing down however.

"Moderate expansion lies ahead in the OECD area according to the latest composite leading indicators (CLIs)," the Organization for Economic Cooperation and Development said.

Data for non-OECD countries "point to continued strong expansion in China and moderate expansion in India."

Within the 29-member OECD area, the CLI rose by 0.5 point in April to 110.1 from 109.6 in March, along with an improved result in the six-month rate of change for the eurozone, Britain and Japan. In the U.S., the CLI "decreased by 0.1 point in April and its six-month rate of change was down for the second consecutive month," the OECD said. The indicator is meant "to provide early signals of turning points (peaks and troughs) between expansions and slowdowns of economic activity." OECD economists use the six-month rate of change as their "preferred pointer to possible turning points."

In late May, the OECD forecast the economies of OECD countries would grow by 3.1% this year, but stressed dangers from global imbalances, principally U.S. trade and current deficits.

OECD members include most of the world's industrialized nations, but not emerging powers China, Russia, Brazil or India.

Copyright Agence France-Presse, 2006

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