OECD September outlook shows strong recovery signs

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Signs of improvement have emerged in most major economies, with a marked recovery in the United States and Japan and strong pointers to growth in several European economies and China, the OECD said on Friday.

The Paris-based Organisation for Economic Cooperation and Development said its composite leading indicator for the 29-member OECD area rose to 100.6 in September from 99.3 in August. The August figure was previously given as 99.2.

"OECD composite leading indicators (CLIs) for September 2009 point strongly to growth in Italy, France, United Kingdom and China, while tentative signals of expansion have emerged in Canada and Germany," it said in a statement.

"A recovery is clearly visible in the United States, Japan and all other OECD economies and major non-OECD economies," it added.

The OECD's leading indicator for the Group of Seven major industrialised economies rose to 100.7 from 99.2 in August.

However the OECD warned that signals of expansion "should be interpreted with caution".

It said the expected pickup in economic activity, relative to long term potential levels, could be partly attributed to a decrease in the estimated long term potential level and not solely to an improvement in economic activity itself.