Indicators point to diverging patterns in economic activity: OECD

The Organization for Economic Cooperation and Development (OECD) on Wednesday said composite leading indicators (CLIs) showed a divergence between major economies in May.

For the euro area, indicators were stable at 100.7 points, and pointed to a firming growth in the European bloc on consolidated economic activity in France and Italy whose CLIs were at 100.7 points and 101 points respectively, above the long term average.

Germany, Europe's leading powerhouse, will keep a continuing, stable pace of expansion.

Similar situation was seen in Japan and India which showed signs of stabilization in growth momentum, Paris-based think tank said.

Overall, the OECD's "major seven" economies showed a tepid economic performance with the harmonized index decreased by 0.1 point to 99.8, pulled down by easing growth in United Kingdom and the United States.

China's CLI kept falling, indicating a slowing economic activity, the report added.

The monthly indicator for Russia shows tentative signs of a positive change in growth momentum while in Brazil the CLI continues to point to a loss in growth momentum, according to OECD data.

For five major Asian countries, China, India, Indonesia, Japan and South Korea, the indicator pointed to easing growth at 98.6 points.

The OECD CLIs are designed to anticipate turning points in economic activity relative to trend, which divide countries into stages of downturn, recovery, slowdown and expansion according to different levels of composite indicators of activity from main sectors. Endit