Leading Indicator of Industry Profitability: December 2012
The Conference Board of Canada
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.
- The Leading Indicator of Industry Profitability rose 0.1 points in November. While it was the fourth consecutive month of gains, it was also the slowest in terms of growth.
- Of the 49 industries covered in the index, 23 recorded a decline in November. That is an increase of six from the previous month, and it is the highest this year. Although the overall outlook for industry profitability remains positive, the large number of industries posting negative near-term outlooks is reason for concern.