OECD growth indicator points to slowdown in India

The growth outlook for major industrialised economies is picking up, although big differences in momentum remain between countries, the OECD's leading indicator for December showed on Monday.

The Paris-based Organisation for Economic Development and Co-operation said its December composite leading indicator for 29 of its member countries rose to 102.8 from a revised 102.5 in November, pointing to stronger growth momentum

Japan, the United States and Germany were leading the charge, it said, with a more moderate outlook for Canada, France and Britain, and signs emerging of a downturn in Italy.

It had previously given its OECD-area indicator for November as 102.8.

In its December leading indicator report, it said the reading for India pointed towards a slowdown, that for Russia pointed to growth and the indicator for Brazil suggested the country will continue to perform close to its long-term trend.

Japan's reading jumped to 103.9 from a revised 103.3 and Germany's rose to 105.0 from 104.7. France's indicator inched up to 102.3 from 102.2, while Italy's reading slipped to 102.3 in December from 102.4 in November.

The OECD revised down its recent readings for China, which is not a member of the club of industrialised nations, and said the CLI for December slipped to 100.5 from a revised 100.7 the previous month.

New data for China point to a downturn, reversing the tentative signs of regained growth momentum reported in last month's assessment. With three of its seven components pointing upward, the outlook remains volatile, the OECD said.

The OECD is predicting global growth of 4.2 percent in 2011, down from 4.6 percent in 2010, with wide variations in different countries' outlooks in the wake of the global economic crisis.