MRO Magazine

Profitability Index keeps rising, but gains are uneven among industries

Ottawa - Following the trend of recent months, the Leading Indicator of Industrial Profitability (LIIP) rose again in March, but there are still a number of industries that are struggling, says the Conference Board of Canada.


Ottawa – Following the trend of recent months, the Leading Indicator of Industrial Profitability (LIIP) rose again in March, but there are still a number of industries that are struggling, says the Conference Board of Canada.

Businesses recorded a 1.4% increase in total operating profits in the fourth quarter of 2012. The April 2013 reading of the LIIP suggests business conditions improved in the early months of the year, which should lead to stronger profits in the first and second quarters.

The results mirror many other economic indicators published in recent weeks, which showed modest increases following declines late last year. Notably, retail sales posted a decline in January and a slight rebound in February; inflation has risen slightly, but remains well below the Bank of Canada’s target of 2%.

GDP increased slightly in January after a decline in December.

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