RBC PMI signals slower downturn in business conditions in March

Thursday April 02, 2015
Written by
Apr. 2, 2015 - The RBC Canadian Manufacturing Purchasing Managers’ Index (RBC PMI) indicated a further downturn in business conditions across the Canadian manufacturing sector in March, though the rate of contraction moderated from the survey-record-low in February.

The indicator came in at 48.9 for the month, up by a hair from 48.7 in February. A reading less than 50.0 on the index indicates contraction.

This represents the first back-to-back deterioration in overall business conditions in the survey's four-and-a-half year history. Moreover, the average reading for Q1 as a whole (49.5) is the weakest since the survey began in late 2010, noted the survey.

“With a second consecutive reading below 50, the RBC PMI is signalling that Canada's manufacturing sector continues to face headwinds,” said Craig Wright, senior vice-president and chief economist, RBC. “We remain confident that as the U.S. economy continues to strengthen and the Canadian dollar becomes more competitive, there will be an uptick in exports, a good sign for manufacturers — we need some time to see this materialize.”

Output, new business and employment levels all fell at slower rates than in the previous month. Manufacturers, nonetheless, signalled a solid reduction in work-in-hand (but not yet completed), and inventory levels were reduced again amid concerns about the outlook for client demand.

Add comment


Security code
Refresh

Subscription Centre

 
New Subscription
 
Already a Subscriber
 
Customer Service
 
View Digital Magazine Renew

Events

Digital Industry USA
September 10-12, 2019
EMO Hannover 2019
September 16-21, 2019

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.