Organisation for Economic Co-operation and Development released Report projecting further Slowdown

Report by the Organisation for Economic Co-operation and Development (OECD) released on 12 September 2011 expected the slowdown in the Indian economy to persist.

The composite leading indicators index for July 2011 showed that most regions of the world would face a slowdown in economic activity with the only exception being Japan.

The OECD country specific composite leading indicators (CLIs) mapped the way data for the economy matched up against the long-term trend. the indicators pointed downwards more strongly for more economies thereby indicating a sure dip in economic activity compared with the assessment for June 2011.

According to the report, Canada, France, Germany, Italy, the United Kingdom, Brazil, China and India were pointing more strongly to a slowdown in economic activity. The CLIs for the United States and Russia wee also pointing more clearly to a slowdown.

The graphs for most OECD countries and other major economies showed that the uptrend in the performance got reversed.

According to the OECD, there is a six-month lead built into the indicators, which implied that  if there is a turning point in a country’s graph, that would show up in the trend performance for the economy by approximately six months. The CLI for the OECD area fell 0.5 point in July 2011, the fourth consecutive monthly decline. While the slowdown for OECD and China is still above the long-term trend in economic activity, the growth rate for India already dipped below the long-term trend.