OECD: Major economies heading for slowdown
The world's leading economies are headed for a slowdown, the OECD said in its latest monthly economic overview, highlighting signs the US economy is reaching a turning point in its growth cycle.
The Organisation for Economic Co-operation and Development said its May composite leading indicator (CLI) for 33 OECD member countries eased for a second straight month, to 102.5 from 102.8, pointing to a deceleration in the pace of recovery.
The CLI for the euro area declined to 102.1 from 102.5, and the reading for the Group of Seven industrialised nations - Britain, Canada, France, Germany, Italy, Japan and the United States - dipped to 103.0 from 103.2.
The individual indicator for the United States was flat at 103.4, while Japan dropped to 103.7 from 104.1.
"Composite leading indicators, designed to anticipate turning points in economic activity relative to trend, point to a slowdown in most major economies," the OECD said.
"In the United States, Japan and Russia, tentative signs of turning points in the growth cycle are emerging."
The OECD's monthly overviews include data for some non-OECD countries such as China, India, Russia, Indonesia and Brazil. The indicators for China, India, Russia and Brazil all declined month-on-month in May, with Brazil and India in particular remaining below their long-term averages. In the most recent of its twice-yearly Economic Outlooks, released in May, the Paris-based OECD said the global economic recovery was on track, helped by a stronger United States, and forecast global economic growth of 4.2 percent in 2011.
But weak US payroll data, released on Friday, showed job growth was grinding to a halt in the world's No. 1 economy, indicating it could face a soft patch in the second half of the year, OECD Secretary General Angel Gurria told reporters.
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