G7 indicator falls in Feb, outlook weaker

PARIS - Most major OECD countries face economic slowdown and the outlook for the Group of Seven leading industrial nations has weakened, an OECD report said on Friday.

By (Reuters)

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Published: Fri 11 Apr 2008, 6:38 PM

Last updated: Sun 5 Apr 2015, 11:37 AM

The Paris-based Organisation for Economic Cooperation and Development said its composite leading indicator (CLI) for the G7 area fell to 98.3 in February from 98.4 in January.

“February 2008 data indicates a weakening outlook for all the major seven economies,” the OECD said in the report, which covered all of its 30 member countries except Iceland.

The CLI for the OECD area of largely industrialised countries rose to 98.9 in February from 98.8 in January, but was 2.4 points lower than it had been a year earlier.

The series is open to slight revisions in historical readings as monthly figures are calculated based on a long-term average that changes slightly as new data is taken into account.

Among OECD members, the largest monthly fall came from France, whose CLI showed a 0.6 point drop in February.

Japan’s CLI rose to 96.7 in February from a previous 96.3, but remained 4.7 points lower than a year ago, the report showed.

The OECD said this was partly because of administrative changes to Japan’s Building Standard Law, which influenced the ”dwellings started” component of the CLI, but noted the trend was clear regardless.

“The CLI, however, has a weakening tendency when the effect of this component is filtered out,” it added.

The report also said data pointed to a downturn in China and India and slowing expansion in Brazil and Russia.

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