Leading Indicator of Industry Profitability: July 2017

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Leading Indicator of Industry Profitability: July 2017

Industry Economic Analysis

Author: Cory Renner

$325.00

  • The Leading Indicator of Industrial Profitability, after rising for seven consecutive months, declined in June by 0.2.
  • A weak second quarter for the TSX has pushed the profitability outlook of Canadian firms downward.
  • The weaker TSX has also hurt the outlook for firms engaged in financial services, particularly those in insurance and banking.
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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.

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