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."
