You are here

China economy weakening further, OECD leading indicator says

[PARIS] China's economy is losing steam and other big emerging market economies such as Brazil and Russia are also showing signs of weakness, the Paris-based Organisation for Economic Co-operation and Development said on Tuesday.

While growth in the eurozone looks stable, it seems to be tapering in the US, UK and Canadian economies, albeit from relatively high levels for mature economies of their kind, the OECD said in its latest report on a forward-looking indicator it compiles monthly.

The leading indicator, a synthetic index designed to detect turning points, dipped to 97.6 from 97.9, retreating further from the 100 mark that represents the long-term average.

In advanced economies, the think tank reported slips of a tenth of a point for the US, UK and Canadian economies, to 99.5, 99.7 and 99.4 respectively.

"Growth momentum is anticipated to moderate in Canada as well as in the United Kingdom and the United States, albeit from relatively high levels," it said.

"On the other hand, the outlook continues to deteriorate for China, with the CLI (leading indicator) pointing more strongly to a loss of growth momentum. Signs of slowing growth momentum are also re-emerging in Russia. In Brazil, weak growth momentum is anticipated."

While the reading for the eurozone edged back to 100.0 from 100.1, the OECD described the climate as one of "stable growth momentum". It said likewise for Japan, with an index that remained at 100.0.

Among the large eurozone economies, the OECD said growth momentum was stable in Germany and Italy, while it singled out France, saying its index of 100.7 signalled "firming growth"even though 100.7 was an unchanged reading.