Leading Indicator of Industry Profitability: January 2013
The Conference Board of Canada
January 8, 2013
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 per cent in December, which marks the fifth consecutive month of modest gains. The small steps forward suggest that while corporate profitability is slowly gaining traction, not every industry is firing on all cylinders.
- The number of industries recording declines fell to 17, down from 23 the previous month. This is an encouraging sign to start off the New Year, indicating that corporate profitability will likely improve in the coming months.