The Organization for Economic Cooperation and Development said that its leading economic indicator suggests that the U.S., Chinese and Italian economies may be approaching a recovery after slowing in previous months.
The composite leading indicator for the U.S. climbed to 100.9 in September from 100.8 in August, the Paris-based OECD said today in an e-mailed statement. The reading for Italy rose to 99 from 98.9, its second consecutive gain, while China’s reading was unchanged for a third month at 99.4.
The stabilization underlines the fragile state of the world economy at a time when U.S. President Barack Obama is beginning negotiations with lawmakers on how to avoid saddling the world’s largest economy with tax increases known as the “fiscal cliff” and European policy makers seek to revive growth after three years of a sovereign debt crisis. The reading for all OECD countries stood at 100.2.
“Signs of stabilization are emerging in Canada, China and the U.S.,” the OECD said today in a monthly statement. “Compared to recent months where the composite leading indicator has pointed to a deteriorating outlook, tentative signs of stabilization are also emerging in Italy.”