Canada. The composite leading index rises
The composite leading index rose by 1.3% in November, equalling the largest of its six straight increases. The advance was led by household demand, while the recovery of demand in the United States gave a boost to manufacturing in Canada.
Growth was widespread, as for the first time in over two years none of the 10 components declined.
Household spending strengthened across the board. The housing index rose 2.5%, its seventh straight gain. Existing home sales showed renewed vigor after slowing over the summer, while housing starts continued to recover. Consumer demand for furniture and appliances and other durable goods both rose faster than the month before.
The leading indicator of the United States advanced 0.7%, its sixth straight increase. The recovery in housing and financial markets began to seep into the labour market, with a steady drop in initial claims for unemployment and a levelling off of jobs in November.
Manufacturing in Canada continued to improve in response to the gradual upturn in export demand. New orders rose for the second time in four months. The ratio of shipments to inventories increased for the fourth consecutive month, with an upturn in shipments reinforcing a steady decline in inventories.
Services employment increased 0.3%, its first advance in over a year. Business and personal services turned up in unison, symptomatic of the broad-based advance of employment in November.