The Organisation for Economic Co-operation and Development (OECD) today warned of a continuation of sluggish growth ahead for the world's economies. The organisation's Composite Leading Indicator (CLI) fell to 120.2 in March from a revised 120.5 in February. The February figure was previously given as 120.4. The CLI summarises information contained in a number of key, short-term indicators known to be linked to GDP and provides early warnings of turning points between expansion and slowdown in economic activity.
For the US, the world's largest economy, the CLI fell 0.6 points to 129.6 in March. The Federal Open Market Committee yesterday confirmed the OECD's prognosis when it said that the risks to the US economy are weighted towards weakness over the foreseeable future. For the eurozone, the CLI eased to 119.1 from 119.2. This comes on the day when German unemployment rose for the thirteenth straight month. The rise of the euro to four-year highs against the dollar is affecting growth in the eurozone by restricting export demand by making goods more expensive abroad. //www.fxcentre.com