JOC 8/2/08

OECD: Major economies heading for downturn

Nearly all major global economies are heading for a slowdown in 2008, according to a report of leading indicators released Friday by the Organization for Economic Cooperation and Development.

The composite leading indicator for the United States, which is used for forecasting future economic growth, fell by 0.7 percent in December from the previous month, presaging a "downturn," the report found.

The United Kingdom indicator fell by 0.2 percent; by 0.1 percent in Germany, and in Canada by 1 percent. All of those economies are also headed for a "slowdown," OECD said.

India and China both suffered declines in December. China's indicators dropped 0.7 while India saw a decline of 0.2 percent from November.

For all of 2007, only indicators for Brazil and Russia showed improvement.

Brazil gained 4.9 percent while Russia improved 1.3 percent in December.
The report predicts a "strong expansion" for Brazil, and a "slow expansion"
in Russia.

Japan suffered the steepest decline in its composite leading indicator for the 12 months to December, down 4.5 percent. The U.S. indicator fell 1.8 percent; Germany, 2.4 percent; Italy, 3.4 percent; India, 0.2 percent, and China, 0.9 percent.

The OECD said that India's economy is in a phase of "slow expansion" while China is in a "possible downturn."