UPDATE 1-Global economic outlook deteriorates slightly, China stabilising -OECD

(Adds details, OECD quotes)

PARIS, Oct 8 (Reuters) - The outlook for the world's majoreconomies including the United States and Germany hasdeteriorated slightly, although China may be stabilising after arecent slowdown, the OECD said on Monday.

In its latest monthly report on the global economy, theOrganisation for Economic Co-operation and Development said itscomposite leading indicator (CLI) for the 33-nation OECD areafell to 100.1 in August from 100.2 in July, pointing to acontinuing trend of weakening growth.

The reading for the United States dipped to 100.5 from 100.6and the outlook for Germany dropped 2 points to 98.9, below thereading for the euro area as a whole.

Russia saw the biggest decline in its leading indicator,dropping 3 points to 98.8, while Brazil saw an improvement asdid Britain, although the UK economy remains weak.

China's outlook remained stable for a third straight month,albeit at 99.4 its reading was still below long-term trend -represented by a figure of 100.

"In China, the CLI points to soft growth, but tentativesigns are emerging that the recent deterioration in theshort-term outlook may have stabilised," the OECD said in itsreport.

The CLI for the euro area fell to 99.4 from 99.5, while theGroup of Seven major industrialised nations - France, Germany,Italy, Japan, Britain, Canada and the United States - slipped byone point to 100.2.

Britain's CLI rose to 100.1 from 100.0 previously, andBrazil's rose 2 points to 99.5.

Despite the improving signs, Britain still needs to dragitself back from a low level - in its global economic outlookreleased last month, the OECD said it now expected the Britisheconomy to shrink by 0.7 percent in 2012, compared to a previousforecast for growth of 0.5 percent.

Overall, the G7 countries are expected to expand by 1.4percent in 2012, according to the Paris-based think tank.

All other major economies saw a one-point slip in theirCLIs, including Japan, which dropped to 100.3 from 100.4.

The OECD's composite leading indicators are designed toprovide early signals of turning points in business cycles.Turning points of CLIs tend to precede turning points ineconomic activity relative to long-term trend by around sixmonths.

(Reporting By Vicky Buffery; Editing by Susan Fenton)

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Keywords: ECONOMY OECD/INDICATOR