According to the latest leading indicators and tendencies survey from the Office for Economic Cooperation and Development (OECD), economic growth is firming in the UK, Japan and the US.
The OECD’s composite leading indicators (CLIs) are designed to anticipate turning points in economic activity relative to trend and this latest report shows a generally positive momentum in the Eurozone.
However, the emerging economies continued to lag behind, with the Paris-based think tank reporting only a “tentative positive change in momentum” in China, the world’s second largest economy, while growth was “around trend” in Brazil and Russia, and below trend in India.
Meanwhile, a separate report shows that inflation fell in December to the Bank of England’s target level for the first time in over four years, easing pressure on the Bank to start considering a rise in interest rates as the economy recovers.
According to the Office for National Statistics (ONS), the Consumer Price Index inflation rate grew by 2 per cent on the year in December, the slowest increase since November 2009, down from 2.1 per cent in November.
The ONS said that the largest contributions to the fall in the rate came from prices for food and non-alcoholic beverages; and recreational goods and services. These were partially offset by an upward contribution from motor fuels.
Meanwhile, the overall price increase for gas and electricity in December 2013 was slightly larger than the rises a year earlier resulting in a small upward contribution to inflation.
Hailing the news as a major success, a spokesperson for the Treasury said that the result is another sign that the Government’s long-term economic plan is working.