Canada's composite leading indicator dropped by 0.6 percent in December from November on continued losses in the stock market and a weak housing sector, Statistics Canada said on Thursday. The drop, the fourth consecutive monthly fall, was slightly less than the 0.7 percent decline forecast by market operators. The stock market was down 7.9 percent in December over November. The housing index, which includes housing starts and sales, fell by 4.9 percent. Statscan said that while consumer spending in December remained resilient, preliminary data indicated January's leading indicator would be hit by sharply lower auto sales. Although new orders were buoyed by continued strength for aerospace products the outlook for export demand remained bleak. Statscan said the U.S. leading indicator in December fell by 0.6 percent, the largest of 16 straight declines.

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