Confirming what most already knew, the OECD says economic activity is slowing in most member countries as well as major-non member economies.
The think-tank said its composite leading indicators (CLIs) for June, designed to anticipate turning points in economic activity relative to trend, pointed to a slowdown for Canada, France, Germany, Italy, the United Kingdom, Brazil, China and India.
The overall OECD CLI, with a long-term average of 100, was down 0.3 percent from May to 102.2.
"Stronger signs of turning points in growth cycles have emerged in the United States, Japan and Russia."
However, the figures were calculated prior to Standard & Poor's
downgrading of the US credit rating.
Global stock prices continued a downward spiral yesterday following the downgrade.
While we are somewhat cushioned from the US and European markets, S&P says New Zealand exports could potentially be disrupted, either by lower prices or softer demand – or both.
An OCR increase next month now looks less likely, and Prime Minister John Key says the government's plan to sell off assets may be delayed by a few months in light of the financial environment.