OECD 'early warning' economic indicator up

An OECD "early warning" indicator on economic prospects rose for the sixth month in a row in April for Europe, Japan and the …

An OECD "early warning" indicator on economic prospects rose for the sixth month in a row in April for Europe, Japan and the industrialised world overall, but fell for the first time in as many months for the United States.

The Organisation for Economic Co-operation and Development said its leading indicator index for the 30 OECD countries as a whole rose 0.5 points to 116.2 in April from 115.7 in March.

The reading for the US economy dropped 0.3 points to 118.7 from 119.0, and another reading over a longer six-month period, designed to smooth out fluctuations, also dipped in the United States, it said in a statement.

Economists consider the OECD indicator as one of the most reliable of a wide range of leading indicators used to spot likely changes in economic growth prospects at an early stage.

READ MORE

The monthly index for the 12-nation euro currency zone rose 0.5 points to 113.3 from 112.8.

The reading for the 15 European Union states increased to 113.8 from 113.1, with the reading for non-euro zone EU member Britain leaping to 113.8 from 112.1.

For Japan, the index rose to 107.8 from 106.9 and for Canada to 125.7 from 122.9.

Among the three economies that account for three-quarters of the euro zone's economic output, the reading increased to 114.0 from 113.7 in Germany, to 109.6 from 109.0 in France and to 107.0 from 106.8 in Italy.