The outlook for growth in the Irish economy has improved strongly over the past few months, according to the Organisation for Economic Co-operation and Development (OECD).

The Paris-based think tank said yesterday that a leading indicator, which brings together a range of short-term indicators linked to gross domestic product, had grown in the first two months of the year. The indicator produced a reading of 146.2 in January, up from 145.1 in December. For February, it rose to 149.6.

The increase came as the outlook for both the US and the euro zone worsened. For the US, the indicator fell from 103.2 in January to 103.1 in February. The euro zone dipped to 105.7 in February from 105.8 in January.

The leading indicator for Germany, Europe's largest economy, fell to 107.8 from 108.2. France's indicator fell to 105.5 in February from 105.6 the month before. -(Additional reporting, Reuters)