Canada’s manufacturing slows

Canada’s manufacturing recovery stepped down a gear at the end of the second quarter, with output, new business and employment growth all easing slightly since May, according RBC PMI’s June data.

Read: U.S. manufacturing expanded in June

New export orders were virtually unchanged in June, which contrasted with the solid contribution to growth seen earlier in 2016. At the same time, stocks of finished goods dropped at a survey-record pace in June, with manufacturers noting that subdued client demand and uncertainty about the economic outlook had encouraged tighter inventory management at their plants.

Adjusted for seasonal influences, the RBC Canadian Manufacturing PMI registered 51.8 in June, down from 52.1 in May. Although the index posted above the 50.0 no-change value for the fourth month running, the latest reading signalled only a marginal upturn in overall business conditions and the weakest pace of improvement since March.

Read: Chinese manufacturing has rough June

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.