Economic growth was expected to slow in the U.S. and the U.K. while China and Russia were expected to experience continued slowing growth, according to new figures released Tuesday by the Organization for Economic Cooperation and Development, or OECD. The Paris-based organization used July figures for its composite leading indicators, based on a broad range of data, for predictions of future economic activity and possible turning points that would affect growth momentum.
Overall, the 34-member OECD expected stable growth momentum. However, the outlook was not bright for emerging economies, such as China, Russia and Brazil, which were all expected to show signs of slowdown, with the OECD expecting “weak growth momentum” in Brazil. The OECD’s indicator for China fell from 97.9 in June to 97.6 in July. Levels below 100 indicate an economic slowdown. The U.S. showed a drop from 99.6 in June to 99.5 in July. The composite indicator fell slightly for the OECD overall from 100.1 in June to 100.0 in July.
The predictions come as disappointing news with global economies continuing to try and dig out of low growth rates following the 2008 financial crisis. One emerging economy bucking the trend was India, where indicators point to firming growth.
The organization said growth was expected to be “moderate” in Canada, the U.K. and the U.S., noting that the possible moderation would come from current high growth levels.
Germany and Italy were expected to experience stable growth momentum with the Eurozone overall showing stable growth, according to the OECD report. Growth in France was expected to firm.
The OECD’s analysis comes amid economic uncertainty across global markets. August’s ‘Black Monday’ had the U.S. stock market drop 1,000 points on news of China’s economic slowdown and a large sell-off on the Shanghai Composite Index. The Wall Street Journal reported that ministers and central bank chiefs from the Group of 20 countries met Friday and Saturday. The group said that so far, 2015 "falls short of our expectations" for economic growth.