Leading Indicator of Industry Profitability: May 2018
The Conference Board of Canada
May 10, 2018
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 Conference Board of Canada’s Leading Indicator of Industry Profitability rose in April—its eighth consecutive monthly increase.
- Oil prices ascended throughout April and have trended upward since mid-2017, leading to an improved outlook for oil extraction.
- The outlook for clothing and general merchandise stores fell for the first time since early 2017. After peaking in January, industry sales have slowed amid weakening demand for discretionary items such as new apparel.