OECD sees growth firming on improving euro zone outlook

PARIS Mon Jan 13, 2014 6:06am EST

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PARIS Jan 13 (Reuters) - The outlook for advanced economies is improving as momentum shifts up a gear in the crisis-weary euro zone, the OECD's monthly leading indicator showed on Monday.

The Paris-based Organisation for Economic Cooperation and Development said its leading indicator covering 33 member countries pointed to growth firming, reaching its highest level since March 2011.

The indicator, meant to flag early signals of turning points in economic activity, rose to 100.9 in November from 100.7 in October, moving further above the long-term average of 100.

The euro area saw a "positive change in momentum", the OECD said, with its reading rising to 101.0 from 100.8 showing improvements in the outlooks for the three biggest economies - Germany, France and Italy.

Meanwhile, growth continued to firm in the United States with the reading for the world's biggest economy rising to 101.0 from 100.9 in October.

Likewise, the Japanese economy, boosted by a huge infusion of central bank stimulus last year, also saw an improvement with its reading reaching 101.4 after 101.2 in October.

The outlook was more mixed for major emerging market economies with China seeing a "tentative positive change in momentum" as its reading ticked up to 99.4 from 99.3.

In India, the OECD said growth was below trend with its indicator unchanged at 97.5 while growth was around its long-term trend in Russia at 99.6 for the third month in a row.

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