OECD report offers economic optimism

An INFLUENTIAL economic forecast group has reported a positive shift in economic activity triggering optimism in the UK

The Organisation for Economic Co-operation and Development (OECD) said a survey designed to anticipate turning points in the economic cycle, had returned tentative but stronger signals of improvement.

The Paris-based organisation reports positive change driven by growth in the US and Japan.

The UK economy contracted in the final three months of 2011 but the OECD survey will add to cautious optimism around the country’s growth prospects for 2012.

Howard Archer, chief UK and European economist at IHS Global Insight, said: “The OECD leading indicator had previously declined for 10 successive months, so the improving trend seen at the end of 2011 and start of 2012 boosts hopes that the UK can return to growth in the first quarter and avoid recession.”