The composite leading index rose by 1.5 per cent in December, its seventh straight month in positive territory, Statistics Canada said Tuesday.

Steam rises from a stack at a factory in Hamilton, Ont. Canada's leading index was up by a robust 1.5 per cent in December, Statistics Canada said Tuesday. (Adrian Wyld/Canadian Press)

The monthly showing matches the level of February 1983 for the largest monthly advance since September 1958, when record-keeping began.

A closely watched economic indicator, the index includes 10 cyclical economic components that together represent all major categories of gross domestic product growth. It's seen as a broad indicator of the economic direction in which the country is headed.

Growth in the leading index usually only exceeds one per cent in the early stages of recovery from a downturn. The index increase has been above one per cent for four of the past seven months.

Broad-based gains

For a second straight month, growth was widespread as none of the 10 components fell. The largest gains continued to originate in household spending and the stock market.

The housing index rose three per cent, its eighth consecutive increase. Existing home sales and housing starts were both strong in the month, the agency says.

Consumers also stepped up their purchases of durable goods, and after lagging the rebound earlier in the year, services employment turned up in the last two months.

The leading indicator for the United States increased 0.8 per cent, matching Canada with a seventh straight advance. In response to rising U.S. demand, Canada's export volumes have risen 11 per cent since their low in May 2009.

The upturn in export demand was reflected in higher new orders for manufactured goods in Canada. As well, manufacturing sales volume rose for a second straight month, Statistics Canada said.