Slow growth ahead

The OECD's composite leading indicators still point to slow expansion ahead in the OECD area, according to the latest figures. The leading indicators are designed to provide early signals of likely turning points in activity, but so far the trend remains weak. Leading indicators for the OECD area

Data pointed to weakening performance for all G7 countries except Canada. In the US, the euro area, the UK and France, leading indicators fell by 0.1 point. The six-month rate of change fell in the US (after 3 months of increases) and in Italy. It has continued to drop in the euro area since December 2003, and for the past 12 months in France. In the UK, the six-month rate of change was stable, having fallen for three consecutive months. Leading indicators decreased more sharply in Japan, by 0.7 points, and its six-month rate of change was down for the second month in a row, having increased for the previous three months. In Germany, where leading indicators fell by 0.4 point, the six-month rate of change has been on a downward trend since January 2004.