4:00 PM Frankfurt – The European indexes rose after German inflation eased in August. French payroll employment increased in the second quarter. The IMF noted Austria growth outlook challenging. Greek industrial output fell in July and Swedish inflation slackened in August.

U.S. stocks and Asian markets climbed.

In Paris CAC 40 Index increased 45.18 or 1.23% to close at 3,722.39 and in Frankfurt DAX Index edged higher 53.75 or 0.87% to close at 6,218.19.

The Organization for Economic Cooperation and Development said today that global economic recovery may be slowing ""faster than previously anticipated.""

In its latest Interim Economic Assessment, the Paris-based think tank projected growth in the Group of Seven nations to be nearly 1.5% in the second half of the year, slightly weaker than its 1.75% estimate from May.

However, the OECD slashed its growth forecast for developed economies and urged that government stimulus should not be withdrawn until the global recovery is secured.

The OECD report said overall financial conditions have stabilized and growth remains strong in the major emerging-market economies. The U.S. economy is expected to expand 2% in the third quarter, but then moderate to 1.2% growth in the final three months of 2010.

For Japan, GDP growth is forecast at 0.7% in the fourth quarter after 0.6% in the third quarter and German growth will edge higher to 1.1% from 0.7%.

The OECD Chief Economist Pier Carlo Padoan said ""it is unlikely that we are heading into another downturn.""

The United States fell to fourth position from second in the global competitive ranking, according to the Global Competitiveness Report 2010-2011 released by the World Economic Forum today. Switzerland topped the list, followed by Sweden and Singapore.

German annual consumer price inflation eased to 1% in August from 1.2% in July, according to a final report released by the Federal Statistics Office today.

The consumer prices remained unchanged in August, compared to the 0.3% rise in the July.

According to a report published by the Federal Statistics Office today, Germany''s manufacturing turnover increased at a slower pace in July.

The manufacturing turnover in real terms increased a working day adjusted 9.9% year-on-year in July, but slower than a revised 10.6% growth in June. At the same time, domestic turnover grew 7.7%, while turnover from business with foreign customers rose 12.7%.

On a monthly basis, the turnover in manufacturing dropped a seasonally and working day adjusted 0.9% in July, compared to a revised 0.5% fall in June. The domestic turnover decreased 1.2%, while non-domestic turnover fell 0.5%.

The Destatis further added sales to euro area countries declined 1.1% in July from the preceding month, while sales to other countries slipped 0.1%.

French payroll employment increased 0.2% in the second quarter from the previous quarter, a final report from the statistics office INSEE showed today confirming its preliminary estimate.

In the second quarter, payroll employment in principally market sectors rose 24,000, after 35,900 jobs were created in the first quarter. Year-on-year, payroll employment decreased 0.2%.

The International Monetary Fund said today that Austria''s economic growth is unlikely to return to the pre-crisis levels in the medium-term and ""considerable"" risks to the growth outlook persisted. The Fund added growth will be affected by aging population and weak investment going forward.

According to the IMF, Austria is expected to grow around 1.5% this year and the next after a 3.9% contraction last year.