The composite leading index rose 0.2% in May, its sixth straight such increase after April’s original estimate of 0.1% was revised up, Statistics Canada reported Wednesday.

According to StatsCan, the financial market indicators took over from household spending in offsetting the weakness in manufacturing that arose from slow export demand.

The stock market posted another sharp gain in May, having regained most of the ground lost over the previous year.

Half of the components edged up or were stable in May, while five components fell, one more than in April.

The monthly increase beat economists’ expectations. RBC Financial says that the consensus was calling for a 0.1% increase.

“The one-month lagged influence of the U.S. leading indicator also provided a drag to the headline number, but the sharp improvement in the U.S. indicator for May will provide a substantial boost to Canada’s leading indicator for the month of June,” says RBC.

Looking ahead, RBC says that average weekly earnings over April are due out tomorrow, with expectations calling for a 1.4% year-over-year increase, just above last month’s 1.3% rise.

http://www.statcan.ca/Daily/English/030625/d030625a.htm