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
- The Leading Indicator of Industry Profitability has been edging higher for the past three months and rose to 103.1 in February—its highest reading since September 2011.
- Of the 49 industries covered, only13 recorded declines in February. That is a significant improvement from October 2011, when 24 industries recorded losses.
- The February increase was just 0.1 per cent—hardly indicative of a surge in near-term industry profitability. Still, the small improvement, plus that fact that fewer industries are posting declines, is encouraging news for the profitability outlook.
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