Despite ongoing inflation woes, the economic growth trends for most countries appear stable, according to the latest composite leading indicator (CLI) readings from the Organization for Economic Cooperation and Development (OECD).
The OECD reported that the latest CLIs — which use forward-looking metrics such as order data, business and consumer confidence readings, and new car registrations to project turning points in economic activity — signal stable growth in Canada, the U.S., Japan and the major emerging markets, along with the OECD countries overall.
The exceptions are Europe and the U.K., where the latest indicators point to weakening momentum “shaped by surging inflation and declining expectations in manufacturing,” the OECD said.
While the CLIs indicate stable growth for most major emerging market economies, including China and India, they signal slowing growth in Brazil, the group also noted.