The Organization for Economic Cooperation and Development (OECD), in its Composite Leading Indicators (CLI) released on Monday, said indicators are pointing to slowdowns in growth in many countries, with the Eurozone, Canada, Germany, UK, and others having experiencing greater slowdowns.
The CLI is designed to anticipate turning points in business cycles and provide an indication of long term economic activity, with a lead time of approximately 6 to 9 months.
The current CLI for OECD member countries fell for the seventh month to 100.44, off from 100.87 – its lowest since December 2009. The month to month growth rate is reported at -0.42% and the year over year growth rate is reported at -1.34%.
There are 29 OECD member countries including Australia, Canada, United States, United Kingdom, Germany and France. Non-OECD member countries include Brazil, China, India, Indonesia, Russian Federation, and South Africa.
The OECD CLIs are based on economic statistics as reported by each country. Statistics include production, employment, share price index, spread of interest rates, new housing starts, consumer sentiment indicator, and others.
The OECD will release its next Composite Leading Indicator Update on December 12.