Ottawa, ON — According to Statistics Canada, the country’s composite leading index rose by 1.0% in June 2010, after upwardly-revised gains of 1.1% in April and May. Growth again was concentrated in the manufacturing sector. Household spending and the stock market continued to moderate, after leading the initial upturn in mid-2009.
New orders for durable goods rose 2.3%, their fifth straight gain. Demand was led by capital goods such as aerospace and machinery.
The ratio of shipments to inventories continued to strengthen, although for the first time in 10 months, all of the increase originated in higher sales as inventories stopped falling.
The average workweek in manufacturing posted a third straight large increase, although this has not yet been reflected in more factory jobs. An upturn in business spending was reflected in more jobs in business services, which drove the overall gain in services jobs in June.
The housing index continued to retreat, off 1.9% after a 1.7% decline in May. Existing home sales led the drop, after peaking in January. Housing starts slowed, as lower new house sales were reflected in an increase in unsold units. Consumer demand for big-ticket durable goods was mixed: furniture and appliances continued to increase, but lower auto sales led a decline for other durable goods.