Leading indicators signal growth slowdown in most major economies: OECD

By Aysu Biçer

ANKARA (AA) - Leading economic indicators continued to show weakening growth in most major economies, the Organization for Economic Co-operation and Development (OECD) said on Monday.

The OECD Composite Leading Indicators (CLIs) were formed to predict turning points in economic activity over the next six to nine months.

"Among large OECD economies, the CLIs continue to anticipate a loss of growth momentum in Canada, the UK and the US as well as in the euro area as a whole including France, Germany and Italy. Stable growth continues to be expected in Japan," OECD said in a statement.

Among major emerging-market economies, the CLI for China (industrial sector) now points to a loss in growth momentum., it said, adding, the CLI continues to indicate stable growth in India, whereas in Brazil, it signals growth losing momentum.

The OECD CLIs are cyclical indicators based on a range of forward-looking indicators such as order books, building permits, confidence indicators, long-term interest rates, new car registrations and many more.

"In the face of persisting uncertainties related to the war in Ukraine, renewed COVID-19 threats, and the impact of high inflation on real household income, the CLI components might be subject to larger-than-usual fluctuations," OECD said.