The BCREA Commercial Leading Indicator (CLI) declined for a second consecutive quarter, falling 0.2 index points in the third quarter to 120.0. The index was still 1.2 per cent higher year-over-year, due to strong momentum from 2014 that carried into the early months of this year.
Third quarter jitters in financial markets and modest employment losses overwhelmed strong gains in provincial economic activity to pull the CLI lower.
“The BC economy remains very strong,” said BCREA economist Brendon Ogmundson. “This underlying strength should help to offset some of the temporary financial market, as well as other factors that pulled the CLI lower over the summer.”
A flattening underlying trend in the CLI points to some stability in commercial real estate activity on the horizon, though a very strong economic climate in the province should continue to support modest growth in the commercial market.