Composite Leading Economic Indicators (CLI) in February points to a positive change in momentum for major geopolitical entities, according to the OECD. Previously, there has been little overall change in the Composite Leading Indicators, most of which were in negative territory.
The Composite Leading Indicators’ positive momentum is being driven primarily by the United States and Japan, with similar signs emerging in a number of other developed economies. The CLI’s for India and Russia are also showing signs of an upward change in growth momentum. This is good news for the global diamond industry.
Unfortunately, the Composite Leading Indicators for the Euro Area and Brazil continue to point to below-trend growth. However, tentative signs are emerging that the recent deterioration in CLI’s is moderating in Europe. In fact, the CLI’s for seven of the fifteen countries in the Euro Area are now pointing towards a positive change in momentum. The only major geopolitical area to show marked deterioration in its Composite Leading Indicators is China, where signs point more strongly to a potential economic slowdown.