Signs of slowing accumulate: OECD

Leading indicators continue to point to slowing growth momentum, according to new data from the Organization for Economic Cooperation and Development (OECD).

The latest readings from the OECD’s composite leading indicators (CLIs) — which aim to anticipate turning points in economic trends based on a series of forward-looking indicators including order books, building permits and new car registrations — signal that economic growth is losing momentum in most major economies.

Notably, the CLIs in the U.S. are now pointing to slowing there, which represents a change from the previous indications of stable growth, the OECD said.

For Canada, the U.K. and Europe, the latest CLIs also point to momentum being dragged down by “high inflation, low consumer confidence and declining share prices,” it said.

In the major emerging-market economies, growth is also expected to lose momentum in China and to slow in Brazil, the OECD said.

The key exceptions are Japan and India, where the latest CLIs are pointing to stable growth, it noted.

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