10 Aug 2008

Weakening outlook for growth in top economies

10:57 am on 10 August 2008

The world's seven biggest economies face weakening growth, according to OECD indicators.

The 30-strong Organisation for Economic Co-operation and Development said research for June indicated a continued weakening outlook for all the major seven economies.

But it warned that the slowdown was likely to be deeper than expected in the eurozone and the UK.

The advanced indicator for emerging economies seemed to point to a stronger outlook for China and Brazil but an easing for India and Russia.

OECD index

The OECD comments are based on its composite index of leading indicators (CLI), which predicts economic conditions in six months' time.

Its indicator for the OECD area fell to 96.8 in June, from 97.4 in May.

A similar indicator for the Group of Seven leading industrial nations fell to 97.0 from 97.4 over the same period.

The eurozone indicator fell by 0.8 points in June for a 12-month fall of 5.2 points.

The figure for the US economy fell by 0.2 points and was 5.4 points down over 12 months. The June figure for Japan was unchanged but showed a fall of 4.1 points over a year.