Here at home, Statistics Canada reported that the composite index rose by 0.2% in June, after an upward-revised gain of 0.4% in May. The estimate for March was also revised up, to a 0.6% increase.

The government agency said consumer spending remained the bedrock of growth, while the weakness in manufacturing was less pronounced.

Housing and the stock market were the weakest components, after leading growth early in 2006.

Households shifted their spending from housing to durable goods. Housing had led growth in the first quarter, but retreated slightly during the second quarter. Furniture and appliance sales grew steadily, while spending on other durable goods rebounded from declines early in 2006 to post solid gains in the last three months. The increase was driven by non-automotive demand.

The manufacturing components improved slightly. The average workweek and the ratio of shipments to inventories levelled off after declining the previous month. New orders dipped, although the previous month’s preliminary estimate of a decline was revised to an increase. Manufacturing employment stabilised in the second quarter after seven consecutive declines.

The leading indicator for the United States edged down 0.1%, its first decline in a year. High gasoline prices have had a larger negative impact on consumer confidence in the United States than in Canada. This reflects sharper price hikes for gas in the United States, and a stronger job market in Canada.