The Organization for Economic Cooperation and Development (OECD) reported Tuesday a potential turning point in economic activity in the euro area, which has crept in late 2011 in a mild recession following the deepening sovereign debt crisis.
"Composite leading indicators (CLIs) designed to anticipate turning points in economic activity relative to trend, continue to point to a positive change in momentum in the OECD as a whole but with some divergence between major economies," the Paris-based organization said in its latest report.
According to the OECD, in February CLIs continue to "show strong signs of regained momentum in economic activity in Japan and the United States," while in the eurozone, the CLI indicates "a potential turning point but with diverging assessments for the four major European economies."
The OECD data shows that economic activity in Italy and France remain sluggish while in Germany and Britain, the CLIs continue to show signs of a positive change in momentum "but these are weaker than in last month's assessment."
For other major economies outside the 34-member OECD area, the assessment for Brazil, India, Russia and, in particular China, shows stronger positive signals compared to last month's assessment.
Last November, the OECD had projected in its biannual report on the economic outlook a brief recession in the euro area in late 2011. It had predicted later in March that the European economy would resume in the second quarter, but the situation remains "more precarious" because the lack of consumer confidence, more unemployment and tight credit "announce a further deterioration of activity."
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