Canada manufacturing continues to grow in August, but pace slows

04 September 2012 19:08  [Source: ICIS news]

TORONTO (ICIS)--Canada's manufacturing sector grew again in August, although at its weakest pace in five months, a bank said on Tuesday.

Toronto-based Royal Bank said that its monthly purchasing managers’ index (PMI) for Canada fell slightly to 53.0 points in August, from 53.1 in July. PMI readings of above 50.0 indicate growth in manufacturing.

Growth in Canadian manufacturing output was unchanged from July but new orders increased, partly reflecting an uptick in new export work, the bank said.

"In contrast to declining manufacturing conditions around the world, particularly in the US, the euro area and China, the Canadian manufacturing sector is continuing to grow, albeit at a moderately slower pace," said Craig Wright, the bank’s chief economist.

"It is encouraging to see that new export orders rebounded and manufacturing firms reported that they continued to hire employees in August,” Wright said.

Royal Bank’s PMI is based on a survey of 400 Canada-based industrial firms. The bank conducts the survey in cooperation with the Purchasing Management Association of Canada (PMAC) and research firm Markit.

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


By: Stefan Baumgarten
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