Leading Indicator of Industry Profitability: May 2015

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Leading Indicator of Industry Profitability: May 2015

Industry Economic Analysis

Author: Robert Meyer-Robinson

$310.00

  • Signal49 Research’s Leading Indicator of Industry Profitability declined for the third consecutive month in April, falling to 107.5, from a revised 107.8 a month earlier. Weighed down by ongoing commodity price weakness, as well as a worsening labour market and weak residential construction spending, the overall index experienced its largest drop since July 2010.
  • Of the 49 industries tracked in the index, 35 declined in April. While all the broad sectors saw their indexes weaken, the manufacturing sector was the hardest hit.
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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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