The composite index advanced in December for the first time since May, Statistics Canada said today.

“After a slowdown every month since June culminating in no change in November, the composite index advanced 0.2% in December,” Stats Can said.

Six of 10 components measured by the index rose in December, two more than in November.

“Manufacturing and services reinforced the steady growth of household demand, while the stock market strengthened further,” the government agency said.

“Household demand posted its strongest and most widespread gains in over two years, led by the booming housing market as well as steadily falling import prices and rising incomes.”

“Furniture and appliance sales grew 0.9%, its largest monthly gain in six months, raising annual growth to 10.0%. Sales of other durable goods advanced 1.1%, driven by autos.”

The housing index continued to hover near its 30-year high set in July.

“Manufacturing responded to the gains in domestic demand,” Statistics Canada said. “New orders jumped 1% in volume, their largest increase in six months.”
The stock market recorded a fourth consecutive advance, led by consumer goods.

“Industrial stocks broke out of a year-long slump with their best increase since December 2003,” the agency said.

In the United States, the leading indicator posted a third straight drop, but the rate of decline moderated. U.S. housing starts fell to their lowest level in more than a year, but the industrial sector moved to the forefront.