Conference Board leading indicator of industry profitability index up

The Conference Board of Canada says its leading indicator of industry profitability rose in September by 0.2 per cent to 103.2, its highest level in 11 months.

 However, the board noted that the index is below where it was a year ago as the economic weakness in Europe, the United and China all weigh on Canada.

The slight upward move of the monthly index suggested corporate Canada’s profitability will likely experience only minor improvements in the near term, the board said.

The leading indicator indexes for seven industries were down compared with a year ago.

Agriculture and forestry, gas extraction, chemical manufacturing, computer and electronic product manufacturing, food and beverage stores, telecommunications, and other financial services all stood lower.

Meanwhile, the wood products industry has posted gains in its profitability index in five of the last six months on an improving U.S. housing market and Chinese demand for wood products.