Canada manufacturing growth slows in July – survey

01 August 2012 17:23  [Source: ICIS news]

TORONTO (ICIS)--Canada’s manufacturing sector recorded its lowest growth in four months amid worries about the global economy, a bank said on Wednesday.

Royal Bank of Canada (RBC) said its monthly purchasing mangers index (PMI) for Canada fell to 53.1 points in July, from 54.8 in June. Readings of above 50.0 indicate growth.

"Canada's manufacturing sector continued to grow in July, albeit at a slower pace, suggesting global growth worries are weighing on the economy,” RBC chief economist Craig Wright said.

"As manufacturing conditions remain positive overall, we anticipate that further gains in employment and a pick-up in exports will support Canada's GDP growth in 2012," Wright added.

The July PMI survey found new orders, as well as output, grew at sharply reduced rates compared with June, the bank said. New export orders rose only marginally, partly reflecting weakness in the global economy, it added.

Meanwhile, manufacturers reported declining average input prices, in particular for materials such as steel, aluminum, resins and packaging, the bank said.

The bank's PMI index is based on survey responses from about 400 Canada-based industrial producers. RBC conducts the monthly survey in cooperation with research firm Markit.

In related news, US manufacturing contracted for the second month in a row in July, following 34 consecutive months of expansion, ICIS reported. 

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

By: Stefan Baumgarten
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