The latest assessment of composite leading indicators (CLIs) from the Organisation for Economic Co-operation & Development points more strongly to global economic upturn.

The OECD’s CLIs are considered to give a signal of future economic performance, and hence demand for steel. The World Steel Association is forecasting a 9% increase in global steel demand next year, as Steel Business Briefing has previously reported.

The CLIs for October continue to indicate a recovery in the economies of OECD countries, the organisation says. CLIs for some member countries – including Germany, Italy, France, the UK and Canada – point more strongly to recovery than the previous month’s reading.

October’s composite leading indicator rose by 1.0 point in the USA and was 3.9 points higher than a year ago. The Euro area’s October CLI was up 1.3 point and stood 8.8 points higher than in October 2008. Japan increased by 1.2 point and was 2.2 points above the same month last year.

All major non-OECD economies are now in a recovery phase, the Paris-based organisation says. China’s October CLI increased 0.2 point and was 5.7 points higher than twelve months ago. India, Russia and Brazil all also registered increases in October.

 

Steel Business Briefing, 16th December 2009