OECD indicators signal slower growth

LeadIndic Feb11.pngThe OECD’s leading indicators for the global economy suggest that GDP growth is continuing to slow.

As the above chart from the American Chemistry Council shows, the OECD’s three key indicators have all slipped from H1 2010’s peaks. The composite indicator (blue) has fallen sharply to +5% from +13%, whilst industrial production (red) is down to +8% and global trade (green) to +13%.

The reason seems to be a more varied performance by individual countries. The ACC note that:

USA, Germany and Japan are seeing “robust expansion” relative to trend.
Canada, France and the UK are now seeing “moderate expansion“.
• But indicators for India are “pointing towards a slowdown.”
• And for China and Italy they “point to a downturn“.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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