The best indicators for commodities. BRIC’s LEI is losing momentum, however, something that must be watched closely given their leading role in demand for commodities. The marginal buyer is always key. To be read in conjunction with this morning’s post GLOBAL GROWTH AND INFLATION SURPRISE INDICES
Leading indicators continue to point to a strong global economic recovery in 2010. According to just-released OECD data, the leading economic indicator (LEI) of OECD countries surged 0.9% in November, a tenth consecutive robust increase. The performance for the LEI of the BRIC economies – which are not part of the OECD – was equally strong, with China advancing 1.1% and India 0.6%. As Today’s Hot Chart shows, the six-month change in our global LEI composite (our preferred gauge of future momentum), is now expanding at a 13.2% annual clip, the strongest signal so far in this recovery and surpassing the momentum throughout the last economic cycle. Given the strength of this signal, the global economy is poised to grow over 4% this year, an above trend growth.
NBF Financial
