Manufacturing index signals January growth

The RBC Canadian Manufacturing Purchasing Managers’ Index revealed marginal increases in both output and new orders in January.

This marks the first rise in production levels since October 2011, with the RBC PMI inching up to 50.5 from the 50.4. recorded in November and December.

Read: Canadian economy beat November forecasts

The RBC PMI finds output increased for the first time in three months in January, but also says new order growth slowed since December.

The rate of job creation also weakened, having eased to a 12-month low.

“The Canadian manufacturing sector experienced a relatively lackluster start to the New Year amid ongoing global economic uncertainty,” says Craig Wright, senior vice-president and chief economist, RBC.

He adds, “As some of the more extreme downside risk scenarios look less likely now, we should see confidence in the global economy improve, paving the way for a stronger recovery in Canadian manufacturing.”

Read: RBC predicts slight manufacturing expansion

In addition to the headline RBC PMI, the survey also tracks changes in output, new orders, employment, inventories, prices and supplier delivery times.

Regional highlights include:

• Manufacturing business conditions in Alberta, British Columbia and Ontario improved
• Reduced levels of new business only occurred in Quebec, with growth signaled elsewhere
• The strongest rate of job creation was recorded by manufacturers in Ontario
• All four regions recorded faster rates of input price inflation in January, with the strongest rise posted in Alberta and British Columbia.

Staff

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