Ottawa, Ontario, September 20, 2006--Canada's leading indicator edged up 0.2 percent in August, down from 0.3 percent in July, as a downturn in the housing sector offset signs of strong business investment, Statistics Canada said on Wednesday.
The rise in the index, while in line with analysts' forecasts, contrasted with the gains of between 0.4 and 0.6 percent seen between January and May of this year.
Weakness in housing starts and sales dragged down the housing component by 2.5 percent and hindered growth in furniture and appliances, up 0.5 percent.
Business investment, particularly in Western Canada, strengthened while the outlook for manufacturers improved slightly.
"While household spending softened, business spending remained strong, and the weakness in manufacturing appeared to moderate," Statscan said in its report. "Firms increasingly moved to the forefront in sustaining domestic spending."
