The leading indicator advanced 0.3% in May as domestic demand continued to improve, Statistics Canada said today.

The advance in May matched the revised figure for April, StatsCan said.

Seven of the 10 components surveyed rose or were flat, while three fell.

“The U.S. leading indicator resumed its near year-long decline, although the American economy has shown few signs of slowing,” the agency said.

“The drop in the U.S. index had a major negative impact on our leading indicator, cutting its growth rate since September in half to 0.2%. Without the drop in the U.S. index, the Canadian index would have risen 0.4% a month.”

Statistics Canada said the housing index edged up 0.1%, ending nine months of decline.

“Manufacturing demand continued to expand with new orders trending up,” the agency said. “Growth was driven by investment goods industries.”

“After two months of levelling off, the U.S. leading indicator resumed its downward trend with a 0.2% drop. This drop may not signal a near-term slowdown for the U.S. economy or our exports.”

“The U.S. index has been weak over the past year, yet our exports in the first fourth months of this year were 4.6% ahead of last year.”