OECD leading indicator for G7 falls in October
PARIS (Reuters) - The outlook for economic growth in the Group of Seven leading industrial nations will continue to weaken and the 30-nation OECD area will see a moderate downturn, an OECD report said on Friday.
The Paris-based Organisation for Economic Cooperation and Development said its composite leading indicator (CLI) for the G7 area fell to 99.2 in October from 99.8 in September.
"October 2007 data indicate a weakening outlook for all the major seven economies," the OECD said in a statement.
The United States CLI showed a 0.6 point drop in October, while the CLI for the euro area fell by 0.1 points over the same period.
The biggest drop came in Japan, where the CLI fell by 1.6 points, driven mainly by the "dwellings started" component of the CLI, which reflected a backlog due to administrative changes in Japan's Building Standard Law, the OECD said.
It said the data from Japan indicated "a strong slowdown."
Data from some non-OECD countries was more upbeat, especially from developing world powerhouses China and Brazil, both of which the report forecast as seeing "strong expansion."
In its twice-yearly economic outlook released on Thursday, the OECD said it expected emerging market economies to provide support for overall economic growth despite a U.S. slowdown and global woes in financial markets.
(Reporting by Brian Rohan)