The Canadian Press

The composite leading index increased 0.7% in October, its fourth straight advance.

Statistics Canada reports eight of 10 components expanded, with housing still the fastest-growing component.

The agency says a continued recovery in the U.S. leading indicator has been slow to translate into higher demand for factories in Canada.

The housing index rose 4.2%, its sixth straight increase.

The other components of consumer spending posted moderate growth of about 0.5%.

Demand, notably for autos and housing, led the U.S. increase in the American leading indicator as it rose 0.9%.

Despite the improvement in the U.S. economy, demand for Canadian manufactured goods remained uneven and new orders fell for a second straight month.

The ratio of shipments to stocks edged up, but only because inventories fell faster than sales. The increase in the average workweek slowed, after two months of acceleration.

Separately, StatsCan said wholesale sales edged up 0.2% in September, after a 1.5% decline in August.

Higher sales in the machinery and electronic equipment sector, and the food, beverages and tobacco products sector offset weaker sales in the automotive products sector, the government agency says.

Sales excluding the automotive products sector rose 0.6%.

In volume terms, wholesale sales were up 0.3%.

Overall, four of seven sectors, accounting for two-thirds of total wholesale sales, increased in September.

The largest increase came in the machinery and electronic equipment sector, which rose 1.2% in September.

The food, beverage and tobacco products sector rose 1%, solely based on the strength of the food products trade group.

Sales in the automotive products sector fell 1.9%, largely due to a 2% drop in motor vehicle sales.

Wholesale inventories fell 0.9% to $55 billion in September, their seventh straight monthly decline.

Overall, eight of the 15 wholesale trade groups reported lower inventory levels, with the largest decline in dollar terms in machinery and equipment, food products, and apparel. Higher inventories were reported in motor vehicle parts and accessories, and building supplies.