The composite leading index rose by 0.7% in March, Statistics Canada reported today.

Strength in the housing and manufacturing sectors helped boost the index from the gains of 0.6% seen in January and February, StatsCan said.

Seven of the 10 components that make up the index were in positive territory last month, one more than in February and two more than in January.

“Housing regained its position at the head of household demand as a result of gains for both new and existing housing,” Statistics Canada said. “The increases spread to Ontario and Western Canada, after Quebec dominated growth last year.”

In Ontario, housing starts have jumped 40% since January as vacancy rates fell. At the same time, existing home sales hit record highs in Toronto, as well as Vancouver and Calgary.

Statistics Canada said demand for labour was the main source of weakness in Canada, leading to the drop of two of the three components that fell.

“Manufacturers continued to trim the average work week, which fell to its lowest level since May 1999,” the agency said.