The composite index grew 0.3% in May after increasing 0.4% in April, Statistics Canada reported today. The rises in the index have ranged from 0.3% to 0.5% over most of the last two years.

The government agency said the sources of growth narrowed significantly, as only 6 of the 10 components expanded, the fewest since March 2005.

Consumer and business spending lifted the overall index, with consumer demand for durable goods rising by 1.1%.

While auto sales remained slow, consumers increased their spending on a wide range of electronic goods and demand for furniture and appliances also remained brisk, reflecting the near-record sales of existing homes.

However, lower housing starts pulled down the housing index, as construction returned to more normal levels after surging during the mild winter.

The strong labour market, which culminated in May’s record surge in full-time jobs, continued to vigorously stimulate consumer spending.