By Andreas Plecko
FRANKFURT (Dow Jones)–The leading indicator from the OECD continues to point to weaker growth in most major economies. As reported by the Organization for Economic Cooperation and Development (OECD), the indicator fell by 0.13 percent to 98.3 points in November. The index fell 0.16 percent in October and 0.20 percent in September.
Among the major OECD economies, leading indicators continue to point to a slowdown in growth in the United States, United Kingdom and Canada, and in the euro zone, including Germany, France and Italy. As in recent months, these developments are primarily due to high inflation and rising interest rates. In contrast, continued stable growth is expected in Japan.
The euro area leading indicator fell by 0.14 percent to 98.0 points in November, Germany’s indicator fell by 0.24 percent to 97.9 points and the US indicator by 0.11 percent to 98.4 points. Japan’s indicator lost only 0.07 percent to 100.2 points and China only 0.02 percent to 98.5 points.
The signals from the major emerging markets are still mixed. In China, leading indicators confirmed signs of stabilization in growth. However, in India and now also in Brazil, there are signs that growth is losing momentum.
The leading indicator of the OECD is used to detect signs of an economic turnaround at a very early stage. The OECD speaks of anticipating turning points relative to the trend six to nine months before the change.
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Link: https://www.oecd.org/sdd/leading-indicators/publicationsdocuments/newsrelease/#d.en.198621
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(END) Dow Jones Newswires
December 08, 2022 06:00 ET (11:00 GMT)