Leading economic indicators gained in July, but that growth cooled off from the month before, according to figures released this morning by Statistics Canada.
The agency's composite leading index slowed to a 0.4% increase in July, after a gain of 0.7% in June. Most of the slowdown originated in the household sector, where three components fell. None of the seven other components decreased.
The nation's number crunchers also say the housing index continued to retreat from its recent highs, declining 4.1%. Both housing starts and sales contributed to the decline. The slump in house sales was reflected in a 0.6% drop in furniture and appliance sales. Demand for other durable goods posted a fifth straight decline.
The manufacturing sector continued to recover steadily. New orders for durable goods rose 2.2%, their sixth straight advance. Rising shipments led the steady recovery of the ratio of shipments to sales. These increases in manufacturing demand are consistent with the continued growth in the U.S. leading indicator, although it too saw growth moderate to 0.4% due to slowing household demand.
