The composite leading index rose by 0.6% in January after gains of 0.8% in the previous four months, Statistics Canada said this morning.

“Manufacturing took the lead in growth, after struggling through most of last year,” the agency reported.

Signs of an improvement in manufacturing were reflected in rising investment and higher exports, leading to more new orders.

“Manufacturers extended their workweek for a third straight month, the longest such string since April 2000,” the agency said.

The improved business outlook was reflected in the stock market, which rose further in January.

“The turnaround in manufacturing was helped by the upturn in the U.S. economy, which also was evident in a further improvement in the leading indicator for the United States.”

The U.S. leading indicator grew by 0.3% as rising confidence continued to boost household demand south of the border.

Six of 10 components surveyed by Statistics Canada rose, one fewer than in December.

In Canada, a drop in the housing index accelerated to 2.5%, as housing starts tumbled because of the cold winter. And sales of durable goods fell for a second straight month, led by slower auto sales.