May 12, 2009

British economy reaches a ‘trough’

A composite of leading indicators pointed to a reversal of fortunes in the British economy although the London stock market failed to find a spark Tuesday.

The FTSE 100 index dropped 0.22 percent after the Organization for Economic Cooperation and Development said leading indicators for the economy were up 0.3 points, The Times of London reported.

In April, the OECD predicted the British gross domestic product would fall 3.7 percent in 2009, a sharp revision form the 1.1 percent decline of a November OECD prediction.

The report of leading indicators on Monday, however, said the economy had reached a trough as leading indicators pointed to a pause in the economic slowdown for the British economy, OECD said.

After a 16-month long recession, for a day, Britain had good news to report. Real estate agents noted interest from new, prospective buyers rose more in April than it had since 1999 and muiltibillionaire investor George Soros noted the economy had avoided a financial collapse.

The OECD said the economic downturns in China, Italy and France had also slowed.

Su Ning, deputy governor of China's central bank, said it was expected the economy would find sustained rapid growth for some period in the future, The Times said.