OECD gauge adds to worries after numbers from Germany and China. Central bankers have taken note of mounting global risks.
Momentum is easing across the world’s major economies, according to a gauge that the Organization for Economic Co-Operation and Development uses to predict turning points.
The Composite Leading Indicator is the latest sign of a synchronized slowdown in global growth, adding to recession warnings sparked by industrial figures in Germany last week and slumping trade figures for China earlier on Monday.
Growth in the some of the world’s biggest economies is slowing.
Source: Bloomberg, OECD
The indicator, which is designed to anticipate turning points six-to-nine months ahead, has been ticking down since the start of 2018 and fell again in November. The OECD singled out the U.S. and Germany, where it said “tentative signs” of easing momentum are now confirmed.
Just two weeks into 2019, the OECD economic indicator follows a run of numbers that mean growth this year could be even slower than currently anticipated. For Bloomberg Economics, the data point to “slowdown, not meltdown,” but it still says the loss of momentum is “striking.”