Canadian manufacturing improves in April – survey

01 May 2012 16:05  [Source: ICIS news]

TORONTO (ICIS)--Conditions in Canada’s manufacturing sector improved in April, from March, primarily because of new export orders on the back of a stronger US economy, according to a survey on Tuesday.

Toronto-based Royal Bank of Canada said its monthly purchasing managers' index for Canada rose to 53.3 points in April, from 52.4 points in March, marking its highest level in four months. Readings of above 50.0 indicate an expansion in manufacturing.

April’s new export orders grew at the fastest pace for a year and Canadian manufacturers hired additional staff, the bank said.

“Favourable manufacturing conditions have been a prevailing force in Canada so far this year thanks, in part, to strong output and new export order growth, in particular, which accelerated in April at the fastest pace in a year,” said the bank’s chief economist, Craig Wright.

 “As the economy south of the border strengthens, we expect the Canadian manufacturing sector will continue to reap the benefits of increasing US demand for key Canadian exports such as autos, machinery and lumber,” Wright added.

The bank conducts the survey in cooperation with the Purchasing Management Association of Canada and a market research firm.

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy blog

By: Stefan Baumgarten
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