Mfg sector recovery slows in July 2015: RBC

Tuesday August 04, 2015
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Aug. 4, 2015 - The latest RBC Canadian Manufacturing Purchasing Managers’ Index (RBC PMI) survey highlighted sustained expansion of production and new business volumes in July, which underpinned an improvement in operating conditions for the second month running.

Increased export sales continued to support the manufacturing sector rebound, though the overall speed of recovery slowed from the six-month high recorded in June, noted the survey.

The RBC Canadian manufacturing index was 50.8 last month, indicating purchasing managers in the sector generally saw expanded production and new business volumes.

The index has been below the neutral 50.0 mark for most of this year but rose to a six-month high of 51.3 nationally in June, although there have been variations on a regional basis for several months.

In July, Ontario showed the strongest improvement of the four regions in the Canadian national purchasing manufacturing index at 55.5 — a strong showing but down from 57.0 the month before.

“The RBC PMI indicates a second consecutive month of improving business conditions in July though still at a very modest pace and slightly below that achieved in June,” said Paul Ferley, assistant chief economist, RBC. “As we enter the second half the year, a strengthening U.S. economy and weaker Canadian dollar should provide a greater boost to exports and business conditions for manufacturers.”

— With files from The Canadian Press

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