Signs of Europe recovery offset by China weakness: OECD – Sydney Morning Herald

Tentative signs of economic upturn are appearing in the euro zone but business activity is showing signs of flagging in China and Brazil, the OECD said on Monday.

The Organisation for Economic Cooperation and Development said that the United States and Japan were leading improving growth prospects.

“Stronger, albeit tenative” signals were evident in major economies and in the euro zone. But figures for China and Brazil were now below trend.

The OECD’s composite index of leading indicators is intended to give an early sign of turning points in economic activity which vary significantly from the long-term trend for growth.

The latest data point “to a positive change in momentum in the OECD as a whole,” the OECD said referring to data from 33 member countries.

The OECD provides analysis and advice on a wide range of policy areas to its member governments.

“The United States and Japan continue to drive the overall position,” it said in a monthly review of the composite indicators.

“But stronger, albeit tentative signals are beginning to emerge within all other major OECD economies and the euro area as a whole.”

The indicators for India and Russia were also pointing to positive change in the rate of growth.

Those for China and Brazil “continue to point to below-trend growth” however.

The OECD also said that its index of business cycle indicators in the area covered by the Association of South East Asian Nations showed “weak growth momentum” in most ASEAN economies, though with some signs of improvement.

AFP