Canada Leading Indicator Index Posts 0.4% Increase, Slowest Gain in a Year

Canada’s index of leading economic indicators advanced in July at its slowest pace in a year, as the country’s housing market slowed.

The index rose 0.4 percent in July, its lowest since June 2009, following a downwardly revised gain of 0.7 percent the previous month, Statistics Canada said today. Economists surveyed by Bloomberg News said the index would rise 0.7 percent, based on the median of nine estimates. July’s gain was less than half the 0.9 percent average increase in the first half of the year.

Statistics Canada’s measure of housing starts and existing home sales fell 4.1 percent. Both of the statistics agency retail sales indicators -- furniture and durable goods -- posted 0.6 percent drops.

That was offset by rising employment and rising new orders for manufacturers, the statistics agency said.

New orders for manufacturers rose 2.2 percent from the previous month, while business and personal services employment advanced 0.3 percent.

Six of the index’s 10 components increased in July.

The agency revised down its readings for the leading indicator for the previous three months, with the index advancing 0.7 percent in June from an initial estimate of 1 percent.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net.

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