Canada’s manufacturing sector grew slightly in August, although at its weakest pace in five months, finds RBC Canadian Manufacturing Purchasing Managers’ Index (RBC PMI).
There were increases in both output and new orders last month. However, the rate of output growth was unchanged from July’s four-month low, while the expansion for new orders remained below average.
Employment increased, with 18% of firms hiring additional staff compared to July. But the rate of job creation slowed to its weakest since April. Meanwhile, input prices increased.
“In contrast to declining manufacturing conditions around the world, particularly in the U.S., Euro area and China, the Canadian manufacturing sector is continuing to grow, albeit at a moderately slower pace,” says Craig Wright, senior vice president and chief economist, RBC.
He adds, “It’s encouraging to see new export orders rebounded and manufacturing firms reported they continued to hire employees in August.”
Regional findings include:
- Alberta, British Columbia and Quebec saw weaker manufacturing expansions;
- Ontario posted the weakest rise in employees;
- Alberta and British Columbia had the strongest rate of input price inflation.