02 April 2013 16:53 [Source: ICIS news]
TORONTO (ICIS)--Canada’s manufacturing sector shrank in March, marking its first decline since October 2010, according a survey released on Tuesday.
Toronto-based Royal Bank of Canada (RBC) said that its monthly purchasing managers index (PMI) for Canada fell to 49.3 in March, from 51.7 in February. Readings of below 50.0 indicate a contraction in manufacturing. The PMI is based on survey responses from 400 industrial firms.
Craig Wright, chief economist at RBC, said that March’s decline was surprising, given that manufacturing continued to expand in the US, which is Canada’s largest export market.
"This weak spot should be short-lived, however, as we expect that global demand for Canadian exports will recover, providing a welcome boost for domestic manufacturers," Wright added.
RBC conducts the monthly PMI survey in cooperation with the Purchasing Management Association of Canada and research firm Markit.Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog
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