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
Supported by several key indicators of Canada’s economic strength showing improvement, the outlook for industry profitability is strengthening. In May, the majority of industries tracked in Signal49 Research’s Leading indicator of industry profitability registered an increase in their index values. This was the case for 32 of 49 industries, or 65 per cent—a substantial change from April, when indexes improved for only 20 industries (41 per cent).
