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OECD says growth likely to slow in its area

Economic growth in the OECD area is likely to slow in the months ahead, the rich country club said on Friday.
PTI | By Reuters, Paris
UPDATED ON DEC 28, 2004 06:31 PM IST

Economic growth in the OECD area is likely to slow in the months ahead, the rich country club said on Friday.

An early warning indicator issued by the Organisation for Economic Cooperation and Development (OECD) showed the economic outlook weakened in September for the United States, but prospects for the euro zone and Japan brightened slightly.

But the OECD sounded a note of caution, highlighting that a measure which signals change in the pace of growth -- the so-called six-month rate of change -- was down for the eighth month in a row, falling to 1.7 in September from 2.3.

"Slowing expansion lies ahead in the OECD area according to the latest composite leading indicators," the Paris-based OECD, which groups 30 industrialised countries, said in a statement.

The leading index, which summarises information contained in several short-term indicators known to be linked to gross domestic product, rose slightly for the OECD as a whole to 103.7 in September after 103.6 in August.

The OECD statement said: "September data showed continued weakening performance in the CLI's six month rate of change for the United States, Canada and Germany. However some evidence of improved performance was shown for Japan, France, Italy and the United Kingdom," it said.

The CLI is the composite leading indicator.

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