OECD sees improved outlook for advanced economies

The Organisation for Economic Cooperation and Development said on Tuesday that the economic outlook for advanced economies is improving.

The US is expected to lead with growth of 1.7 percent this year, although that is down from the OECD's May forecast of 1.9 percent. Japan is expected to grow 1.6 percent, unchanged from the OECD's May forecast.

Europe is now expected to join the recovery, with Germany seen growing 0.7 percent and France 0.3 percent, although Italy is still expected to contract.

Outside the euro area, the UK is expected to grow 1.5 percent, sharply up from the May forecast of 0.8 percent.

However, apart from China, which is expected to grow 7.4 percent this year, the OECD sees a slowdown in many emerging countries.

Economic data on Tuesday were mostly consistent with the OECD's outlook.

In the US, the Institute for Supply Management reported that its US manufacturing PMI rose to 55.7 in August, its highest since June 2011, from 55.4 in July.

Markit's US manufacturing PMI was not as strong, falling to 53.1 in August from 53.7 in July.

Another report from the US on Tuesday showed that construction spending rose 0.6 percent in July.

Meanwhile, the UK added to its recent string of strong economic data on Tuesday. The Markit/CIPS construction PMI rose to 59.1 last month, its highest level since September 2007, from 57.0 in July.

However, China's services activity eased a little in August. The National Bureau of Statistics reported on Tuesday that its non-manufacturing PMI fell to 53.9 last month from 54.1 in July.