MRO Magazine

Profitability index sees biggest jump in two years

Ottawa - The Conference Board of Canada’s Leading Indicator of Industry Profitability Index recorded its largest monthly gain — 0.3% — of the past two years in February 2013, providing a strong signal that corporate profits...


Ottawa – The Conference Board of Canada’s Leading Indicator of Industry Profitability Index recorded its largest monthly gain — 0.3% — of the past two years in February 2013, providing a strong signal that corporate profits will grow at a healthy pace. The increase brings the index to 105.3, the highest reading since the index was launched in 2001.

The overall index was lifted by strong growth in several sectors, including energy, financial services, and computer and electronic products manufacturing. Pharmaceutical manufacturing industry has seen its profitability index decline for five consecutive months.

The S&P/TSX has been trending up since November 2012 thanks to better economic data coming from China, Europe and the United States. And the stock market rally is feeding into the profit outlook for industries within the financial services sector, such as the “other financial services” segment, which has seen its index rise for five consecutive months.

The full report can be found on the CBC website at http://www.conferenceboard.ca/e-library/abstract.aspx?did=5376.

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