All major economies headed for slowdowns: OECD

PARIS Mon Nov 14, 2011 8:14am EST

A woman walks past a shop advertisement in south London January 26, 2011. Organisation for Economic Cooperation and Development Secretary-General Angel Gurria said on Wednesday the British government needed to stick to its deficit-cutting plans and he believed inflation in Britain was under control. REUTERS/Suzanne Plunkett

A woman walks past a shop advertisement in south London January 26, 2011. Organisation for Economic Cooperation and Development Secretary-General Angel Gurria said on Wednesday the British government needed to stick to its deficit-cutting plans and he believed inflation in Britain was under control.

Credit: Reuters/Suzanne Plunkett

PARIS (Reuters) - None of the world's major economies will escape a slowdown, the Organization for Economic Co-operation and Development said on Monday, highlighting increasing signs that growth momentum is dwindling across the board.

The Paris-based organization's composite leading indicator (CLI) for its members fell for the seventh straight month to 100.4 in September, down from 100.9 in August and hitting the lowest reading since December 2009.

Readings for individual countries and big developing world economies were broadly lower at levels indicating slowdowns, and were in many cases below their long-term averages.

"Compared to last month's assessment, the CLIs point more strongly to slowdowns in all major economies," the OECD said in a statement.

The OECD CLIs are designed to anticipate turning points in economic activity relative to trend -- a turnaround in an indicator tends to precede turning points in economic activity by around six months.

The Group of Seven's CLI fell to 100.6 in September from 101.1 in August while the reading for the euro area dropped to 99.1 from 99.9, well below its long-term average of 100.

Japan's CLI remained above its long-term average of 100 with a reading of 101.6, but it was still down from 102.0, suggesting an economic recovery after its March earthquake and tsunami disaster is losing steam.

Economic momentum in the United States eased only slightly, according to the OECD's indicator, which fell to 101.2 from 101.5.

The Chinese economy also showed only marginally weaker activity with a reading of 99.8, down from 99.9. Among other emerging market economies, Brazil's CLI fell to 94.0 from 95.1 while India's reading decreased to 93.8 from 94.4.

In a report released at the end of last month, the OECD slashed its 2012 growth estimate for the United States to 1.8 percent from 3.1 percent and cut its forecast for growth in the euro area next year to 0.3 percent from 2.0 percent in May.

(Reporting by Leigh Thomas; Editing by Catherine Evans)

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Comments (6)
Bagwa wrote:
From the OECD :
“We set international standards on a wide range of things, from agriculture and tax to the safety of chemicals.”
That’s pretty wide latitude.

“We look, too, at issues that directly affect the lives of ordinary people, like how much they pay in taxes and social security, and how much leisure time they can take.”

I cannot take the OECD Seriously.

Nov 14, 2011 6:57am EST  --  Report as abuse
jscott418 wrote:
The World Governments are too busy trying to save themselves from collapse. They don’t have time to be concerned about the economies. Whoever said Capitalism and Socialism were immune from failure was wrong. Any Government can fail when it over spends.

Nov 14, 2011 8:18am EST  --  Report as abuse
DrJJJJ wrote:
What happened to spending/gambling our way to more prosperity-the progressive approach?

Nov 14, 2011 1:18pm EST  --  Report as abuse
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