June a very good month for manufacturers

Canada’s manufacturing industry experienced a “solid rebound” in June, the second quarter of 2014 ending on a “positive note” with the strongest output and business growth so far this year. That is the conclusion of the latest monthly RBC Canadian Marketing Purchasing Managers’ Index ( RBC PMI). The index rose to 53.5 from the nine-month low of 52.2 in May. The growth reflects increased output, new orders, employment growth and changes in inventories and delivery times, according to RBC.

manufacturing-industry-Canada-US-RBC-PMI-economy-output-orders-employment-hiring-exports-trade-EDIWeekly

Manufacturers surveyed said that greater domestic demand was responsible for much of the business growth in June. Growth in exports was reportedly only marginal, mainly to the United States. Staffing levels increased for the fifth consecutive month in the manufacturing sector, with the strongest growth in Quebec and Ontario.

Greater production requirements mean greater input purchasing, and that too was at its highest level so far this year. Input prices were higher as well, for the twenty-third consecutive month. This was attributed by some manufacturers to depreciation of the Canadian dollar against the US dollar pushing prices for raw materials higher.

RBC senior vice-president and chief economist Craig Wright commented that he expected the favourable growth conditions experienced in June to “further improve going forward supported by a strengthening global economy, increases in external demand for domestic goods and a depreciating Canadian dollar.”

 Exports were up in May

Statistics Canada, meanwhile, reports that Canada’s exports in May reached their second highest value on record. Volumes were up 4.2 per cent, to a value of $44.2 billion in May. Of that, $32.5 billion went to the United States, led by passenger cars and light trucks. Motor vehicles and parts exports rose 9.8 per cent, the fourth consecutive monthly increase.

Exports-imports-statistics-Canada-June-oil-energy-cars-trucks-EDIWeekly
Source: Statistics Canada

Exports to countries other than the United States grew by 8.3 per cent, to $10.7 billion. As a result, Canada’s trade deficit with the rest of the world fell from $961 million to $152 million.Consumer goods exports reached a record $4.8 billion in May, led by pharmaceutical and medicinal products, which were up 41.4 per cent.

Imports also increased, the largest by value being in the auto and auto parts industry. Imports of engines and auto parts, passenger cars and trucks was up 6.7 per cent to $7.8 billion. Imports of metal ores and non-metallic minerals grew 44.5 per cent in May. Aircraft and other transportation equipment imports rose 12.7 per cent, to $1.4 billion.

A drop in natural gas imports contributed to the first decline in energy products imports in five months. Energy products imports fell 13.7 per cent.

 

Did you miss this?

Other Popular Stories

  • GE increasing its investment in fracking technology
  • Irving Oil to build new marine terminal in NB to handle new crude from Alberta
  • Securing new investment greatest achievement of Unifor's agreement with Ford
  • North American oil and gas industry has trouble finding workers
  • Manufacturing sector saw slight improvement in August: RBC
  • SWISS inaugurates commercial flights of Bombardier's CS100
  • Goodbye NAFTA, Hello USMCA trade deal: it's not all in the name — Canadian dollar soars, stocks rise; autos win, dairy loses
  • 2018 Oil Price Forecasts
  • Modest improvement in manufacturing sector continued in July: RBC
  • A supersonic jet with no front window? NASA's X-59 uses a 4K monitor instead.
  • Auto Industry Expected to Meet 2025 Standards
  • Manufacturers and employers win with new Labour rules in Ontario; jobs did increase 17,600 in January 2019
  • New catalyst could help bring hydrogen fuel economy closer
  • Canada's prosperity at risk from disruption, lack of skilled workforce: reports
  • World's largest public transit system to be built in only 5 years — in Riyadh, capital of Saudi Arabia
  • As the Tesla Model 3 enters production, oil companies revise estimates of EVs on the road upwards to 530 million by 2040
  • Forestry industry pledges 13 per cent CO2 reduction to fight climate change
  • Transportation workers urge quick response to Lac-Megantic report
  • Researchers find way to turn wood into supercapacitors
  • Japanese claim breakthrough in hydrogen storage technology
Scroll to Top