Canadian manufacturing slumps again

Canada’s manufacturing sector lost momentum again in September, moving from 53.0 in August to 52.4 on RBC’s index. This is the weakest pace of expansion recorded since March.

Read: Canadian manufacturing remains stable

Key findings include:

• Growth of output and new orders slowed to eight- and six-month lows respectively;
• 17% of firms hired staff, 14% reduced their workforces;
• Volume of new export orders increased;
• Input prices of fuel and raw materials (e.g. metals and plastics) increased strongly.

Read: High paying jobs drive growth: CIBC

“While it hasn’t been entirely smooth sailing for Canada’s broader economy in recent months, continued business spending and improving labour market conditions, among other generally positive factors, will help set the stage for GDP growth of 2.1% in 2012.”

Regional highlights include:

• Ontario saw the weakest improvement in manufacturing;
• New order growth slowed in all four regions, with the weakest in Ontario;
• The rate of job creation accelerated slightly in Alberta and British Columbia, was unchanged in Quebec, but eased elsewhere;
• Alberta and British Columbia posted the strongest rate of input price inflation.

Staff

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