• 5 hours Rio Tinto To Spend $1 Billion To Reduce Its Carbon Footprint
  • 1 day The Ultra-Wealthy Lost $140 Billion In One Day
  • 1 day Three Energy Casualties In The Coronavirus Crisis
  • 2 days Markets Crumble As Coronavirus Panic Peaks
  • 2 days Cobalt May Be The Key To Clean Hydrogen Fuel
  • 4 days How Taxpayers Are Bankrolling The EV Revolution
  • 5 days The Coronavirus Is Crushing China’s Car Market
  • 6 days Fighting For Survival In The Streaming War
  • 7 days Want A Job? Forget About A Bachelor’s Degree
  • 7 days Another Major Car Maker Is Backing Hydrogen
  • 8 days Are Americans Finally Sold On Soccer?
  • 8 days Is The Tech Bubble About To Burst?
  • 9 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 9 days What Web Traffic Trends Can Tell Us About The World
  • 9 days Miners Face Greater Headwinds
  • 10 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 11 days Goldman Slashes Oil Price Forecast By $10
  • 12 days Tesla Raises $2 Billion In Share Selloff
  • 13 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 13 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

OECD Warns Leading Indicators Point to Slower Global Growth

Pitifully Late Recognition of the Obvious

It's been pretty clear that the global economy has been slowing for some time, but recognition of that fact has been pitifully slow.

In January, the Fed still believed it would get in four rate hikes this year. The IMF also held to its overoptimistic global growth estimates.

Amusingly, the Fed still believes recent weakness is "transitory", but the always late to the party IMF changed its tune today in the wake of miserable trade data from China.

Also today, the Organization for Economic Co-operation and Development (OECD) joined the IMF today with a warning about global growth.

The OECD specifically warned that leading indicators for the United Kingdom, the United States, Canada, Japan and Germany suggest easing of growth.


Signs of Easing Growth in the OECD Area

Please consider the OECD report Signs of Easing Growth in the OECD Area.

The outlook points to easing growth in the United Kingdom, the United States, Canada and Japan. Similar signs are also emerging in Germany.

Stable growth momentum is anticipated in Italy and in the Euro area as a whole. In France, and India, CLIs point to stabilizing growth momentum.

The outlook for China remains unchanged from last month's assessment, pointing to tentative signs of stabilization, while in Russia and Brazil the CLIs point to a loss in growth momentum.

Let's take a look at various OECD charts, anecdotes in red by me.

OECD comment: "The following graphs show country specific composite leading indicators (CLIs). Turning points of CLIs tend to precede turning points in economic activity relative to trend by approximately six months. The horizontal line at 100 represents the trend of economic activity. Shaded triangles mark confirmed turning-points of the CLI. Blank triangles mark provisional turning-points that may be reversed."


OECD Area

OECD Area Growth

There are 20 OECD countries. Here is the OECD Member List.


OECD China

OECD China Growth

Given the collapse in Chinese exports and imports, reports of stabilization in China are ridiculous.


OECD Eurozone

OECD Eurozone Grwoth


OECD Germany

OECD Germany Growth


OECD France

OECD France Growth


OECD Japan

OECD Japan Growth


OECD UK

OECD UK Growth


OECD Canada

OECD Canada Growth

Notes: There are 20 OECD countries. Only France, Italy, and India are above the 100 mark. I saved the best chart for last.


OECD United States

OECD United States Growth

Anyone spot a little wishful thinking if not outright OECD bias in announcing peaks?


Economic Derailment

Collectively, these charts do not point to a slowing in growth, they point to a confirmed global recession. The only reason a global recession hasn't been announced is growth lies from China.

For a related story, please see "IMF Warns About Risk of Economic Derailment" as Chinese exports plunge most since 2009.

 

Back to homepage

Leave a comment

Leave a comment