The U.S. economy continues to expand, but the BRIC countries — Brazil, Russia, India and China — are showing a moderation in economic activity, according to the Organization of Economic Cooperation and Development's (OECD) composite leading indicators.
U.S. economic expansion is more moderate than in the last month's leading indicators, but is still stable, with year-on-year growth at 2.8 percent, according to the OECD.
The euro zone is showing a "mild loss" in growth momentum on average, despite Germany's stable pace of recovery, due to slowdowns in France and Italy.
Growth in the Brazilian and Indian economies is slowing down, and China is showing signs of a loss of momentum, the OECD said. Worries that China's runaway growth would falter have weighed on the global economy, and any serious loss in momentum could have severe implications for the export-led recoveries in Europe and North America.
The People's Bank of China raised its reserve ratio requirements for banks on Tuesday as it looks to control rising inflation. China has been trying to prevent a credit bubble from developing.
Russia is also showing the first signs of a loss in growth momentum, the OECD said.
China in particular has maintained significant growth throughout the economic crisis, with its gross domestic product expanding by 9.2 percent in 2009. Even a marginal slowdown could hit confidence.
The U.K. is maintaining a stable pace of expansion, the OECD said. No reliable estimates of the leading indicators could be given for Japan, which is still recovering from the aftermath of the earthquake and tsunami in March.