Canada's leading indicator slid by a smaller amount in the latest reading, a sign that the country's recession might be slowing, according to new numbers released Wednesday.

Statistics Canada said that the leading indicator — a composite number comprising a number of different economic variables — fell by 1.1 per cent in April. That figure was a bit better than the 1.5 per cent drop in March, but still represented the eighth straight monthly decline for the index.

The national statistical agency said the financial components of the leading indicator rose in April, providing the lift for the overall number.

"Both financial components increased in the month, as the money supply expanded steadily while the stock market turned up," Statistics Canada noted in a press release.

Predicting the future

Those portions of the leading indicator that represented the real economy, however, fell in April. That included the length of the average work week, new durable orders and furniture and appliance sales.

Governments devise leading indicators based upon a series of specialized numbers that can point to future economic activity. By aggregating all these figures, the statistical agencies of governments hope to produce an index that indicates how the overall economy will perform in the coming months.

Canada's April index stood at 213.3 (with 1992 as 100). That monthly reading was the lowest since March 2006.

The United States, which also produces a leading indicator, posted a decline of 0.3 per cent in April, the smallest drop in six months, Statistics Canada said.