Composite Leading Index Slowed Down

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By Elli Davis, August 28, 2010

Thumbs down by Desi

Here we have another sign that our economy is not in such a great state as it was just a couple of months ago! The composite leading index of Statistics Canada has slowed down from 0.7 percent rise in June to only 0.4 percent increase in July, the agency reported.

Unfortunately, this decline, for the most part, has been caused by the unsatisfactory housing situation, which saw poor housing starts and sales last month. The housing component on its own fell by 4.1 percent, which is quite a large drop. Retail sales indicators fell too, by 0.6 percent. On the contrary, the demand for manufacturing sector goods increased for the sixth time in a row, by 2.2 percent this time.

I am quite disappointed in the results for the housing sector, which play a significant role in our economic growth. I know the situation could be much worse but that doesn’t make the news any more palatable, does it?