Manufacturing sector growth slower in May

An industry index that measures such data as new orders, production output, and employment finds that the manufacturing sector in Canada slowed in May, as export growth slowed. Gains in output were at their weakest since August 2013. The RBC Canadian Manufacturing Purchasing Managers’ Index (RBC PMI), a monthly survey of trends in the manufacturing sector, was 52.2 in May, down from 52.9 in April. An index of 50 is considered neutral. A reading of 55 is considered to be consistent with GDP growth in the 3 per cent range.

The senior vice president and chief economist for RBC, Craig Wright, attributes the relatively poor reading to “sluggish global growth.” Things will improve, he believes, with “easing economic uncertainty, improving growth prospects in the US and a more competitive currency.” In the United States, the Institute for Supply Management manufacturing index reached a five-month high in May. However job creation in the US in May was well below forecasts.


The rate of new order growth in the manufacturing sector was unchanged from April, but that was already the weakest in thirteen months. At the same time, order backlogs eased, in part as a result of increased hiring, which edged up.

As output slowed, input buying followed. The rise in purchasing activity is described as marginal in May. Stocks of finished goods decreased for the first time in seven months.

Meanwhile, the Conference Board of Canada, which also measures the Canadian economy each month, finds that the economy has become, at least in the short term, more dependent on commodities. April’s composite leading index was up 0.4 per cent, based on higher resource prices. For the eighth consecutive month, resource prices were higher on the Toronto Stock Exchange.

Did you miss this?

Other Popular Stories

  • Offshore wind costs will fall significantly if development continues: study
  • Miners struggling with higher costs, lower prices
  • Drop in manufacturing pushes industrial capacity use down in Q4 2012
  • Flyboard "hoverboard" becomes real — beyond recreation, this spectacular tech may have practical applications
  • Engineers use captured carbon to create new form of concrete
  • Infrastructure Ontario seeks proposals for Highway 427 expansion
  • Progress made on Detroit River cleanup: fish no longer smells
  • Manufacturing the sole industry showing job losses in February
  • Safer tank cars coming as railways ship more oil than ever
  • Canadian oil output to double by 2030 say oil producers
  • Natural Resource GDP increased 0.4%, led by Energy subsector at 0.7% — Statscan
  • UN aviation body sets first CO2 emissions standard for world's airlines
  • Canadian company to provide modular housing for refugees in Sweden
  • SpaceX’s Falcon 9 Ripped Hole in Ionosphere During 2017 Launch
  • Tesla is now the number one valued carmaker in America, jumping ahead of GM
  • Three Out of Four Energy Companies Hit by Cyber-Attacks in the Last Year
  • Largest biomass power plant in NA set to open in Atikokan
  • Valve industry in growth mode as LNG prospects grow brighter
  • Magna unveils newest concept car, posts strong Q4 profits
  • GM investing $250 million at Ingersoll plant
Scroll to Top