Canada, U.S., China among countries showing signs of economic slowdown: OECD
Canada, the United States and China are among the countries that are on track to experience an economic slowdown in the coming months, according to a report from the Organization for Economic Co-Operation and Development.
The OECD’s monthly index for composite leading indicators for its member countries fell to 100.4 in September, down 0.4 percentage points from August and down from 102.3 in May.
Canada dropped 0.4 points, which took its composite leading index number to 99.4, down from 101.2 in May. The country’s leading indicator has been falling for several months and dropped below 100 in August.
The Canadian economy has weathered the recession and its aftermath better than those in many other countries but is still feeling the drag of a painfully slow global recovery. Severe debt problems in Europe combined with slow growth in the United States, Canada’s biggest trading partner, to drop demand for the natural resources Canadian companies produce.
The OECD uses the index to foresee changes in the economic trend in six to nine months but cautions it’s a broad measure that’s not intended to judge the speed or strength of a recovery or downturn.
“Compared to last month’s assessment, the CLIs point more strongly to slowdowns in all major economies,” the organization said Monday.
“In Canada, France, Germany, Italy, the United Kingdom, Brazil, China, India and the euro area, the CLIs point to economic activity falling below long-term trend,” the OECD said.
In the United States, Japan and Russia the indicators point to slowdowns in growth towards their long-term trends.
The United States had a reading of 101.2 in September, down 0.3 points from August and down from 101.7 in May while China’s dropped to 99.8 in September, down one point from August and down from 100.6 in May.