UPDATE 1-Canada composite leading index flat in June

 

(Adds details)

OTTAWA, July 18 (Reuters) - Canada's composite leading index was unchanged in June, following two months of gains, as weakness in housing and new orders for factory goods offset strong consumer spending, Statistics Canada said on Friday.

"Household spending remained the driving force behind growth, a reflection of strong labor market conditions," Statscan said in its release.

Markets had expected a 0.1 percent gain after increases of 0.2 percent in May and 0.1 percent in April.

The housing index declined 1.1 percent, erasing part of the 1.9 percent increase in April. New orders for durable goods fell 3.5 percent and have been volatile in recent months due to what Statscan said was a growing importance of the aerospace industry in manufacturing. Orders for aerospace tend to fluctuate sharply from month to month, it said.

Indicators of consumer demand remained strong. Retail sales of durable goods rose, wages are up 4.4 percent so far in 2008 while the average work week stabilized in May and June, Statscan said.

LINK

* Statistics Canada report

here (Reporting by Louise Egan; Editing by Peter Galloway)