Major world economies 'on course for slowdown'

None of the world's major economies will escape a slowdown, the Organisation for Economic Co-operation and Development has warned.

By Angela Monaghan, Economics correspondent

OECD data designed to anticipate turning points in economic activity suggested that signs of a faltering recovery were increasing across the board.

The OECD's monthly composite leading indicators (CLIs) index fell to 100.4 for the OECD area, from 100.9 in August, where 100 represents the long-term trend of economic activity. Among the G7 countries the index fell to 100.6 from 101.1.

"Compared to last month's assessment, the CLIs point more strongly to slowdowns in all major economies," the OECD said.

The eurozone fell to 99.1 in September from 99.9, and the UK was also worse off, falling to 99 in September from 99.8 in August.

It was the seventh successive monthly fall for the UK, and at below 100, suggested the economy has fallen below long-term trend levels.

"The further deterioration in the OECD leading indictor in September clearly ties in with mounting concern that the UK could be heading back into recession," said Howard Archer, economist at IHS Global Insight.

A poll by ComRes on ITV News showed two thirds of the British public believe the UK is on course for another recession.