The BCREA Commercial Leading Indicator (CLI) declined in
the second quarter by 0.4 points to 120.6, the first decline in the index since
the beginning of 2014. However, due to strong gains over the past four
quarters, the trend underlying the CLI continues to push higher.
“Uncertainty in the global economy roiled financial and
commodity markets in the second quarter,” said BCREA Economist Brendon
Ogmundson. “However, BC’s nation leading economic growth should help to sustain
commercial real estate activity through the end of the year.”
The CLI trend smooths the often noisy economic data that
comprises the CLI index and is therefore a more reliable indicator of future
growth in investment, leasing and other commercial real estate activity.
Therefore, the continued rising trend in the CLI still points to positive
growth, despite this quarter’s slight downturn in the index.
Copyright BCREA - reprinted with permission
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