Growth of the seven biggest economies in the world is set to weaken further, the OECD signalled today.
The warning fits the picture of sharp slowdown in many advanced countries which has emerged so far this year as the repercussions of the credit crisis, and high oil prices, reached ever deeper into activity and lending.
A similar signal for the euro zone from European Central Bank yesterday - when the bank held its key rate steady - pushed down the euro against the dollar, a movement continuing today.
The Organisation for Economic Cooperation and Development said its composite leading indicators for June 'indicate a continued weakening outlook for all the major seven economies.'
The OECD said there is a mixed outlook for big emerging economies.
'The latest data for non-OECD member economies tentatively point to expansion in China and Brazil and a downturn in India and Russia,' it said.
The indicator for all 30 countries in the OECD fell by 0.6 points in June and was a full five points lower than in June last year.
The figure for the US economy fell by 0.2 points and was 5.4 points down over 12 months.
The euro zone indicator fell by 0.8 points in June for a 12-month fall of 5.2 points.
The OECD explained that its indicator, which must be used with caution, 'is designed to provide early signals of turning points (peaks and troughs) between upswings and downswings in the growth cycle of economic activity.'
