Statistics Canada revealed on Thursday that the rate of decline of the leading indicators composite index accelerated to 0.8% in January from 0.5% in December, its fifth consecutive decline.

This was the largest and most widespread decrease since the index turned down in September 2008. Among the 10 components, six fell, one was unchanged and three increased.

The TSX/S&P composite index component was the hardest hit as it declined by 9.5% in January. The housing index was also hard hit as it contracted by 7% in the month, its largest monthly decline since June 1990. Both existing home sales and housing starts have fallen sharply since last October. Housing starts are almost 50% below their highs touched in the spring of 2008, with the largest losses in Western Canada.

That said, consumer spending accounted for two of the three components that expanded. Despite the slump in housing demand, purchases of furniture and appliances rose slowly. Sales of other durable goods grew 0.2%, and automobile sales in January recovered some of their fourth-quarter losses.

The two indicators of manufacturing demand fell in unison, even before extensive shutdowns were implemented in the auto industry. The ratio of shipments to inventories declined again, as firms could not cut production as fast as sales were falling. New orders swung from an increase to a 3.6% decline as exports turned down. The U.S. leading indicator fell for the 17th straight month.