OTTAWA, ON (October 1, 2018): The Macdonald-Laurier Institute’s Leading Economic Indicator (LEI), a tool designed to predict changes in the Canadian business cycle, increased by 0.1 percent in August.
The balance of positive and negative forces in the economy was reflected in an equal number of the ten components posting increases and decreases.
According to LEI author and MLI Munk Senior Fellow Philip Cross, declines were most pronounced for the household sector, “where consumer confidence fell for the sixth straight month as housing continued to slump.”
Meanwhile, softer labour market conditions were reflected in higher claims for employment insurance.
“Both manufacturing components also lost ground,” noted Cross. Growth was buoyed by the US economy, which supported higher commodity and stock market prices.
To learn more about the leading economic indicator, click here.
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