The Canadian Leading indicators were released on August 19th. The following information is supplied by Stats Canada and reproduced here in its entirety, and is a breakdown and more in-depth analysis of the Leading indicators report. It’s interesting reading as it shows the breakdown of each sector and clearly you can see that housing is slowing, confirming other evidence of a weaker close to the year than the beginning. Although the Barrie real estate market may not be representative of the Canadian Real Estate market as a whole it’s likely a similar trend.
The Canadian Composite Index of Leading Indicators advanced
0.4 per cent in July. While positive, the monthly growth rate slowed
considerably from the 0.7 percent increase recorded in June. Growth in the
manufacturing components of the index remained strong as new orders for
durables rose 2.2 per cent for the sixth consecutive monthly increase.
However, the housing index fell 4.1 per cent on declines of both starts and
sales. The decline in home purchases was likely linked to a 0.6 per cent drop
in furniture and appliance sales.
Analysis: The Composite Index of Leading Indicators can be used to estimate
monthly GDP results several months ahead of their actual release. July’s
report suggests that the economy may have grown at a slower pace compared
to monthly growth rates experienced earlier in the year, which is in line with the
Bank of Canada’s recent downgrade of its expectations for Canadian
economic growth. Increased borrowing costs and more stringent lending
guidelines for insured mortgages led to a slower pace of sales in the second
quarter. While strong home sales and related economic activity played a key
role in the initial recovery from recession, the drivers of growth over the longer
term will be more diverse with a greater contribution from goods production

The Canadian Composite Index of Leading Indicators advanced0.4 per cent in July. While positive, the monthly growth rate slowedconsiderably from the 0.7 percent increase recorded in June. Growth in themanufacturing components of the index remained strong as new orders fordurables rose 2.2 per cent for the sixth consecutive monthly increase.However, the housing index fell 4.1 per cent on declines of both starts andsales. The decline in home purchases was likely linked to a 0.6 per cent dropin furniture and appliance sales.Analysis: The Composite Index of Leading Indicators can be used to estimatemonthly GDP results several months ahead of their actual release. July’sreport suggests that the economy may have grown at a slower pace comparedto monthly growth rates experienced earlier in the year, which is in line with theBank of Canada’s recent downgrade of its expectations for Canadianeconomic growth. Increased borrowing costs and more stringent lendingguidelines for insured mortgages led to a slower pace of sales in the secondquarter. While strong home sales and related economic activity played a keyrole in the initial recovery from recession, the drivers of growth over the longerterm will be more diverse with a greater contribution from goods production

Filed under: BarrieBarrie Real EstateInvestment Real EstateStatistics

Like this post? Subscribe to my RSS feed and get loads more!