G7 text to be slightly more negative on U.S.: source

WASHINGTON (Reuters) - The Group of Seven industrialized nations will on Friday issue a statement that is slightly more downbeat on the U.S. economy than previously, a G7 source said on Friday.

"The text (on the U.S.) is slightly more negative," than the text issued by the G7 in February at its meeting in Tokyo, the source said.

"It won't be alarmist or use the R-word," he said referring to the word recession.

He said there had been a sharp slowdown in the U.S. economy in recent months and that this would clearly have an impact on all economies.

However, the source said there was no need to be overly pessimistic since the economic situation was different in different regions and the emerging economies were holding up.

He indicated the term "robust" used in connection with emerging economies in the last G7 text would probably be used again this time.

The source declined to comment on what the G7 text might say on exchange rates.

He said the G7 text would draw on a report drawn up by the Financial Stability Forum (FSF) led by Bank of Italy Governor Mario Draghi.

The FSF, comprising central banks and finance ministries of countries with major exchanges and global regulators, has drafted a paper laying out options to ensure financial system stability following turbulent times in global markets.