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The composite index rose 0.2% in May, following no change in April and declines in the previous two months. May's increase was widespread, with 7 of the 10 components expanding, the most since the turmoil began in global credit markets last August. One component was unchanged, while two declined.
Household demand remained the strongest sector in the economy. The housing index jumped 1.9% after seven straight declines. Housing starts strengthened in May, while existing home sales rebounded from a weak start to the year, which was partly due to poor weather. Consumer outlays for durable goods grew steadily.
The manufacturing sector continued to improve slowly after a very weak start to the year. The turnaround has been led by new orders, which expanded for the third straight month. Orders had tumbled 3.3% at the turn of 2008, their largest monthly decline in over a decade. The average workweek stopped falling after five straight declines, while employment in manufacturing rose in May. Manufacturing shipments were hampered by a strike in the auto industry.
The leading indicator for the United States remained the most negative component in the composite index, posting its ninth straight decline. Weakness in the auto and housing sectors was partly offset by the lift rising exports gave to the industrial and agricultural sectors.
Available on CANSIM: table 377-0003.
Definitions, data sources and methods: survey number 1601.
This release will be reprinted in the July 2008 issue of Canadian Economic Observer, Vol. 21, no. 7 (11-010-XWB, free). For more information on the economy, consult the Canadian Economic Observer.
A more detailed analysis of the components is available online.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Philip Cross (613-951-9162; ceo@statcan.gc.ca), Current Economic Analysis Group.
Table(s).
