Economic Index Fell

By Elli Davis, October 26, 2010

Photo by Andrew Morrell

Here is yet another surprising piece of economic information! Housing and manufacturing belong to the seemingly least successful sector of the Canadian economy! These two were the main reason the index of leading economic indicators fell last month, for the first time since April last year, Statistics Canada reported on Thursday.

However, it is true that no huge rises were expected and the drop was fortunately a very slight one, just 0.1 percent. Nonetheless, if compared to the rise of 0.6 percent recorded in August, it is a noticeable change. Housing starts and existing home sales decreased by 3.2 percent and the demand for durable manufacturing goods declined by 1.9 percent from August. Actually, half of the 10 main index components fell last month.

Well, this had to come sooner or later, I guess. I don’t want to keep repeating myself all the time but after such great economic results in the past, a fall is simply unavoidable. Nevertheless, I am hoping for better October results!

Posted in Toronto Real Estate News | No Comments »