Manufacturing jobs increase in June, but at a slower pace

The number of Canadian manufacturing jobs increased at a slower pace in June, as the sector improved modestly, according to a recently released RBC report.

The Manufacturing Purchasing Managers’ Index indicates employment in the sector increased in June for the ninth consecutive month, but job creation slowed to a seven-month low.

New jobs grew at a slower rate as the sector reported a decline in business due to weak global demand and unfavourable exchange rates.

Alberta and British Columbia led the country in employment growth, while Quebec registered marginal job losses, the report said.

The report also indicated that the Canadian manufacturing sector stepped up production and saw modestly stronger growth in output, leading to marginal backlogs of outstanding work during the month.

But new exports fell due to weak global demand and unfavourable exchange rates.

The volume of new orders increased for the ninth consecutive month as companies reported more new orders and new clients, but the rate of new orders slowed since May, as many survey respondents reported a slowdown in demand from the United States.

“The moderation (in the sector) is consistent with the trends we are seeing around the globe, pointing to a temporary soft patch in the economic recovery,” Craig Wright, chief economist at RBC, said in a statement.

The report said Canadian manufacturers also saw higher costs during the period due to higher fuel and oil prices, and passed on some of those costs to clients by raising prices in June.

Ontario saw the highest rate of inflation, and prices charged were raised to the greatest extent during the month.

The index measured 52.8, above the 50.0 mark, which means no change. That compares to a decline of 54.8 in May.