OECD report shows world’s biggest economies on course for slowdown

None of the world's major economies will escape a slowdown, the Organization for Economic Co-operation and Development (OECD) reported Monday.

The OECD's composite leading indicator (CLI) report showed economic activity likely to fall below its long-term trend in its 34 member countries.

The CLI fell for the seventh straight month to 100.4 in September, down from 100.9 in August and hitting the lowest reading since December 2009, Reuters reported.

Among G7 countries, the index fell to 100.6 from 101.1, Britain's Daily Telegraph reported, adding that: Italy had the lowest reading among the G7 at 97.5, compared with 98.5 in August. Germany suffered the biggest drop over the month to 99.1 from 100.4.  

The Paris-based organization also said the rate at which new businesses have been launched fell in 2011, after rising in 2010, according to the Wall Street Journal. 

The OECD report read that:

Compared to last month's assessment, the CLIs point more strongly to slowdowns in all major economies. In Japan, Russia and the United States the CLIs point to slowdowns in growth towards long term trends. In Canada, France, Germany, Italy, the United Kingdom, Brazil, China, India and the Euro area, the CLIs point to economic activity falling below long term trend.

The CLI is considered a broad measure and doesn't analyze the speed of a recovery or slowdown.

However, last month the OECD cut its growth forecasts for the world's biggest economies and said "without decisive action the outlook is gloomy."