Canada's leading indicator, which points to the economic direction the country is headed, continued to slide gently in June, as it had in May, Statistics Canada reported Friday.

But the rate of decline was much slower than earlier in the year, and there was even a positive sign for exports.

Stronger home sales were a bright spot in the June leading indicator, Statistics Canada said. (CBC)The index for the United States, one of 10 items that make up the Canadian indicator, rose for the first time since the credit crisis on financial markets began in August 2007, the agency said. Canada's economic recovery is tied to the U.S. because it buys most Canadian exports.

The indicator, which includes 10 items, fell 0.1 per cent in June from May, the same amount it fell in May from April. But in April, it was down one per cent.

Among the 10 indexes, four rose. The U.S. index was up 0.3 per cent. The other three rising factors were housing prices and starts (up 4.9 per cent), the stock market (up 3.7 per cent) and money supply (up 0.4 per cent).

Manufacturing still weak

All three manufacturing indexes — average work week, new orders for durables and the ratio of shipments to inventories of finished goods — fell. Both retail indexes and the employment index also fell.

The 10 components lead cyclical activity in the economy and together represent all major categories in the gross domestic product, such that the indicator "reflects the variety of mechanisms that can cause business cycles," Statistics Canada said.