November 23, 2009

Canadian housing index continues rapid growth

OTTAWA

The composite leading index increased 0.7 per cent in October, its fourth straight advance. Statistics Canada reports eight of 10 components expanded, with housing still the fastest-growing component.

The agency says a continued recovery in the U.S. leading indicator has been slow to translate into higher demand for factories in Canada.

The housing index rose 4.2 per cent, its sixth straight increase.

The other components of consumer spending posted moderate growth of about 0.5 per cent.

Demand, notably for autos and housing, led the U.S. increase in the American leading indicator as it rose 0.9 per cent.

Despite the improvement in the U.S. economy, demand for Canadian manufactured goods remained uneven and new orders fell for a second straight month.

The ratio of shipments to stocks edged up, but only because inventories fell faster than sales. The increase in the average workweek slowed, after two months of acceleration.

-Canadian Press

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