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Consumer spending fuels economy
Canadian Press
Wednesday, August 23, 2006
Ottawa — Statistics Canada says its composite index, an early measure of how the economy is performing, rose by 0.2 per cent in July, with consumer spending leading the way.
The agency says housing and stock markets rebounded from a spring slump, but a slowdown in the United States partly offset those gains, aggravating a drop in orders for manufactured goods in Canada.
In the manufacturing sector, orders for new goods were down by 0.9 per cent, their largest drop since early 2003.
Statistics Canada says sales of furniture and appliances and other durable goods led the 10 components that make up the index.
Housing starts in the first half of the year in Canada were running ahead of last year's pace, in marked contrast to a slowdown in the United States.
The stock market rallied over the summer and increased demand for business services helped boost the employment in the service sector.
The agency also revised the index for June upward to 0.3 per cent.
It says the leading indicator for the United States fell 0.2 per cent, following a drop the month before, suggesting a continuation of slow growth that surfaced in the second quarter in that country.
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