PARIS: According to the report released today, Economic expansion in the Group of Seven industrial nations is set to moderate, signalling a weaker outlook for the United States, Germany and Japan.
The Paris-based Organisation for Economic Cooperation and Development said its composite leading indicator (CLI) for the G7 area fell to 104.9 in February from 105.1 the month before.
“The latest composite leading indicators (CLIs) suggest that some moderation in economic expansion lies ahead in the OECD area,” the organisation said in a statement.
“The spreads between short and long-term interest rates are contributing negatively to the performance of the CLIs in all the major seven economies, while business confidence is contributing positively in these same countries except Germany.”
The CLIs of Canada, Germany, Italy, Japan, Britain and the United States all posted a decline, while France’s indicator picked up slightly, it said.
The United States’ leading indicator declined to 106.1 from 106.4, while the CLI for Japan dipped to 100.6 in February from 100.7 in the previous month.
The figure for the 30-nation OECD area came in at 109.5, unchanged from January.
A less volatile measure, the six-month rate of change, fell to 0.8 in February for the OECD area, down from 1.0 in January. It fell to -0.3 for the G7 area, down from 0.1 before.
“February 2007 data show weakening performance in the CLI’s six month rate of change in most of the major seven economies,” the OECD said.
The survey also pointed to strong expansion in China, moderating expansion in India and Brazil, but a weakening outlook for Russia.