Manufacturing business conditions improve in September

Canadian manufacturers say business conditions improved again in September because there were higher levels of output, new orders and more employment across the sector, shows the RBC Canadian Manufacturing Purchasing Managers’ Index. However, the strength of the upturn was dampened, in part due to stagnation in new export business.

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At 53.5 in September, the seasonally adjusted RBC Canadian Manufacturing PMI dropped from August’s nine-month high (54.8). It’s the lowest number since June, but it’s above the neutral 50.0 value. Overall, it signals improved business conditions. The third quarter average for the headline index (54.2) was the highest since Q4 2013.

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“As we progress into the final months of 2014, we expect a further strengthening in the U.S economy will augment Canadian exports and set the stage for solid manufacturing business conditions overall,” said Craig Wright, senior vice-president and chief economist, RBC.

The headline RBC PMI reflects changes in output, new orders, employment, inventories and supplier delivery times.

Key September findings: