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OTTAWA, Aug 19 (Reuters) - Canada's composite leading indicator rose by 0.4 percent in July from June on strong performances by the housing sector and the stock market, Statistics Canada said on Wednesday.
The increase -- the first monthly advance since August 2008 -- was greater than the 0.2 percent rise predicted by market operators. Statscan revised the May and June figures up to no change from initial 0.1 percent drops for both months.
Six of the 10 components expanded in July, the most since May 2008. The stock price index increased by 5.7 percent from June while the housing index was up by 4.5 percent.
Statscan said the recent improvement in the U.S. economy had not been reflected in Canada's manufacturing sector, where new orders fell by 5.9 percent.
The leading indicator is a five-month moving average. The unsmoothed index -- for July alone -- dropped by 0.1 percent. (Reporting by David Ljunggren; Editing by Theodore d'Afflisio)