(RTTNews) - Growth in the seven major world economies continued to weaken in July as indicated by the Composite Leading Indicators, or CLIs, the OECD said on Friday. Among the large non-OECD member countries, the CLI’s point to tentative expansion in China, Brazil and Russia while the Indian economy was mired in the throes of a downturn.

The OECD CLI is designed to provide early signals of turning points, between upswings and downswings in the growth cycle of economic activity. The monthly change point of the CLI provides information on short-term movements, while the annual change point supplies short-term trend information. In practice, on average, turning points in industrial production or GDP have been found about six months after signals of turning points had been detected in the CLI, according to the OECD.

The CLI for the OECD area decreased by 0.7 points in July compared to June. The CLI for the U.S. declined 0.2 points in July, while that for Canada dropped 1.5 points and the CLI for the France slipped 1.1 points. For Germany it decreased 1.5 points, while for Italy it declined the most, 1.9 points. The CLI for Japan declined the least 0.5 points, while the CLI for the U.K. slid 0.9 points.

The CLI for Brazil posted a monthly expansion of 1.4 points in July, while the CLI for China declined 1.3 points.

On an annual basis, the U.S. CLI reading slipped 5 points in July, while the CLI reading for Canada also dipped 5 points. The CLI for Germany dropped 6.7 points, the highest among the seven major nations, while that for Japan dipped 3.4 points, the least. The CLI for France shrank 6 points, while for Italy it declined 5.9 points. The CLI for the U.K. slid 5.5 points.

The CLI for Brazil grew 2.3 points annually in July, while the CLI for China witnessed a drop of 1.4 points. The CLI for Russia expanded a robust 5 points while the CLI for India dipped 5.5 points.

The CLI for the OECD area as a whole declined 5.2 points on an annual basis in July, while the Euro area witnessed a strong slowdown as the CLI decreased 6 points. The Major five economies of Asia consisting of China, India, Indonesia, Japan and Korea, showed signs of a slowdown as their CLI declined 3.1 points.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Canada, Economy, Eurozone, Japan, Releases, USA.

Subscribe by RSS Subscribe by Email