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.
Document Highlights
- Weaker economic growth prospects worldwide and growing uncertainty about the fate of the eurozone led to a decline in the leading indicator of industry profitability in May. The index posted its largest drop since last fall.
- Resources-related industries are seeing their profitability outlook affected the most by the recent developments in the global economy, as weakening confidence has driven many commodity prices lower.
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