Ottawa, Ontario, August 23, 2006--Canada's composite leading indicator rose 0.2 percent in July as expected, the lowest monthly increase so far this year, as weaker manufacturing shipments to the United States offset strong consumer spending, Statistics Canada said on Wednesday.
The result was precisely in line with the average forecast of analysts surveyed by Reuters. Statscan revised the June increase in the index to 0.3 percent from 0.2 percent.
A slowdown in U.S. economic growth contributed to a 0.9 percent drop in new orders for Canadian manufacturers, the biggest decline since early 2003, the agency said.
"Lower shipments to the United States continued to hamper manufacturing activity in Canada," said the report.
That weakness was offset by gains in the retail components of the index, with sales of furniture and appliances and other durable goods rising 1.0 percent and 0.9 percent, respectively.
The housing index, which includes housing starts and sales, fell 1.3 percent but Statscan said housing starts were actually up this year compared with 2005.
