The BCREA Commercial Leading Indicator (CLI) rose for the third consecutive quarter, advancing 1.3 index points, or 1.2 per cent, to a revised index level of 111.91. On a quarter-over-quarter basis, the CLI is now 3.2 per cent above its level in the first quarter 2011.
trend in the CLI has turned sharply upward, reflecting several months of strong
underlying data,” said Brendon Ogmundson, BCREA Economist. “This signals
a potential acceleration commercial real estate activity in the subsequent two
to four quarters."
quarter’s increase in the CLI was driven by calmer global financial conditions
to start 2012 as Euro-based fears cooled. The financial component of the CLI
accounted for over one-third of CLI’s gain in the first quarter, with
manufacturing output and employment growth also making a significant
given the re-emergence of fears surrounding the Eurozone, last quarter’s gains
may be only temporary,” added Ogmundson.
BCREA Reprinted with permission