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There is new growth momentum in the global economy, the latest OECD composite leading indicators (CLIs) have revealed.
They point to an increasing pace of economic expansion in terms of November 2010 data.
CLIs are designed to anticipate turning points in economic activity relative to trend.
While there is regained growth momentum in the US, the euro area shows stable pace of expansion.
The CLIs for China, US, France and Japan show clear signs of accelerating economic activity, while the one for Russia points strongly to steady expansion, the OECD said in its latest release. It added that signs of economic stabilisation in the pace of economic expansion are also present in the leading indicators for Canada, Italy, UK and India, while Brazil faces a slowdown.
The growth cycle outlook for India is stable pace of expansion as disclosed by unchanged data for three months from September to November 2010.
The positive relationship between global economic growth and consumption of energy and industrial metals is well known. The growth momentum in the OECD area points to expanded consumption demand for energy products such as crude oil as well as metals like steel, copper and aluminium.
Evidence of regained growth momentum in China is likely to prove positive for energy and metals markets. If the global growth momentum as seen from November data is retained, the year 2011 may witness strong demand growth for commodities.
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