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OECD sees ‘Stable Growth Momentum’ in Major Economies

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(Globe & Mail – Reuters)

Growth momentum in most major developed economies is stable although Germany and Japan both show signs of losing steam, the OECD said on Monday, as it flagged a turnaround in growth prospects for India.

The Paris-based Organisation for Economic Cooperation and Development said its leading indicator covering 33 member countries was unchanged in June at 100.5, above its long-term average of 100.

The indicator, designed to flag turning points in the economic cycle, suggested there was “stable growth momentum” in the bloc of mostly wealthy developed nations, the OECD said. The indicator has been unchanged at 100.5 since February.

However, growth was losing momentum in Germany, where the indicator had dropped to 100.2 in June from 100.4 in May, and Japan, where it fell to 100.1 from 100.4 the previous month. Italy’s growth momentum improved, to 101.7 from 101.6 in May.

Among major emerging economies, the indicator for China was unchanged while India and Russia had seen slightly improving prospects for expansion.

The outlook was stable in the United States, with a 100.5 reading unchanged since May. The OECD said the euro area showed stable growth momentum, with the reading unchanged at 101.0.