PARIS, Sept 5 - Economic prospects for the United States and Japan brightened in July, and the euro zone outlook also picked up, the OECD think-tank's monthly early warning indicator showed on Friday. July's leading indicator, a forward-looking index compiled by the Paris-based Organisation for Economic Co-operation and Development, came in at 134.1 for the United States, up from 132.4 in June and the fourth consecutive monthly rise. For the overall OECD area, the indicator rose to 123.4 from 122.1 in June, while for Japan it climbed to 104.9 from 102.8. "Moderate to strong recovery lies ahead in the OECD area and the United States," the OECD said in a statement accompanying data showing firmer prospects across the board except for Italy, whose July leading indicator slipped.
"July data signal accelerating performance in the U.S. and Japanese economies, whereas data for the euro area signal slightly improved performance ahead," the OECD said. The euro zone leading indicator inched up to 120.1 from 119.8 in June, while another OECD measure, the underlying six-month rate of change, rose for the third consecutive month for the euro area, following 11 straight months of declines. The OECD's six-month rate of change for the United States showed a substantial rise for the fourth consecutive month. Earlier this week, the OECD held steady its 2003 growth forecast for the United States at around 2.5 percent, but halved its forecast for the euro zone to just 0.5 percent, calling the 12-nation area a "weak spot" among leading economies. Friday's data showed the OECD's overall gauge of economic prospects rose in July for the Group of Seven (G7) leading industrialised countries, with the index hitting 121.7 versus 120.3 a month earlier. For G7 member Germany, whose economy slipped into recession in the first half, the leading indicator climbed by nearly two points to 124.2 from 122.7, while for Britain, also in the G7, the index rose more modestly to 102.6 from 102.1. Canada, also in the G7 club, registered an increase in its leading indicator, to 133.8 in July from 132.5./