The growth of the leading indicator picked up to 1.2% in May, after hovering around 0.6% since the start of the year, Statistics Canada said today.

StatsCan said the gain was driven by housing growth and was the strongest gain since April 2002.

The agency said nine of the 10 components increased, two more than the month before, as manufacturing rebounded.

The housing component was the main driver, increasing 1.9% over April.

Economists had forecast the leading indicator to come in at 0.6%, where it has been hovering since the start of the year. The upturn accompanied a 12.3% gain in exports to the United States since January, the best four-month period since January 1995.

Outside of housing, the agency said the improvement in the leading indicator was widespread as the household furnishings segment posted its fastest growth since February 2002.

StatsCanalso noted that “sales of other durable goods firmed after auto demand regained the ground it had lost at the turn of the year.”