Leading Indicator of Industry Profitability: February 2019
The monthly Leading Indicator of Industry Profitability is constructed from high frequency data series. The indicators are designed to be predictive of movements in corporate profitability six months hence. An industry leading index is created for the economy as a whole, as well as for 49 individual sectors within the economy, thus providing coverage for most of the private business activity that takes place in Canada.
- Supported by a turnaround in the stock market and low unemployment rates, The Conference Board of Canada’s Leading Indicator of Industry Profitability stabilized in January, holding steady at its December value.
- The persistent weakness in Canada’s oil sector is contributing to the weakness in the loonie. That benefits export industries but also increases prices for industries that rely on imported inputs.
- Overall, 34 of the 49 industries tracked by the index increased in January.