“The world’s largest economies are set to diverge in coming months with few signs that a broad-based recovery in growth is imminent, according to the Organization for Economic Cooperation and Development’s composite leading indicators.
The leading indicators for December, released Monday, point to a pickup in growth in the U.S., Japan, the U.K. and Brazil, but suggest growth will remain weak by historic standards in many other big nations.
Economic data releases for the final three months of last year show that many developed economies contracted during the period, including the U.S., the U.K. and Germany.
The Paris-based think tank said Monday that its leading indicator of economic activity in its 34 developed-country members rose to 100.4 in December from 100.3 in November.
A reading above 100.00 means economic growth is set to be above the trend rate, which itself varies widely among large economies.
However, behind the slightly stronger overall measure, the leading indicators for individual economies point to differing fates.
“Composite leading indicators (CLIs)…show diverging growth patterns in the economic outlook of major economies,” the OECD said.
“In the United States and the United Kingdom, the leading indicators continue to point to economic growth firming,” the OECD said, while for Japan and Brazil “signs of growth picking up are emerging.”
The euro zone remains a weak spot in the global economy, although it is unlikely to slow further, it said….”
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