The Canadian composite leading indicator continued to strengthen for a fifth straight month, with a 0.6% increase in October, according to Statistics Canada.

StatsCan says the index of leading indicator is showing the largest back-to-back gains since early in 2002. The housing components continue to lead growth. An upturn in business spending also gave a boost to the overall index.

The strength in housing spilled over into higher sales of furniture and appliances. Demand for other durable goods rose for a fifth straight month. Household spending was reinvigorated by the largest consecutive gains in full-time jobs since the start of the year, just as interest rates and consumer prices fell.

Business spending in Canada also showed signs of improving, says StatsCan. In manufacturing, the ratio of shipment to stocks of finished goods ended a six-month slide. Services employment was lifted by the first gain in business services in six months.

RBC Financial says the data show that the stage is set for a Canadian economic rebound.

“Overall this is a useful if albeit imperfect indicator that points to an upward growth path for the Canadian economy but it is of little significance to financial markets since its details have long been known,” says RBC.