From: Reuters
Published December 7, 2007 06:27 AM

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.

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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)

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