The post-pandemic rebound has likely peaked in several major economies, according to the latest leading indicator readings from the OECD.
The OECD said that its composite leading indicators (CLIs) — which track factors such as order books, confidence indexes and building permits to anticipate turning points in economic activity — suggest that growth is set to slow.
“The strong growth rebound since the depth of the Covid-19 related economic crisis in 2020 may soon moderate,” the organization said.
While previous monthly CLI readings suggested that post-pandemic growth was nearing a peak, the latest data indicates the peak has now passed in several major markets: “Among major OECD economies, a drop in momentum is visible in the latest CLIs for Canada, Germany, Italy and the U.K.,” the OECD said.
The CLIs point to stable growth in Japan and the euro area overall, but the peak in the indicators has passed there too.
For the U.S., the CLI also indicates stable growth, although it’s now below its long-term trend, the OECD said.