Modest improvement in manufacturing sector continued in July: RBC

RBC-PMI-ISM-manufacturing-sector-Canada-EDIWeekly

Canada’s manufacturing sector experienced positive business conditions in July, as measured by the RBC Canadian Manufacturing PMI. It was the second month in a row that the index was in positive territory after several months of falling, though it did in fact fall slightly from the six-month high reached in June. The index reflects changes in output, new orders, employment, inventories and supplier delivery times. It stood at 50.8 in July, down from 51.3 in June. A reading above 50 is considered positive. An increase in exports contributed to the recovery in manufacturing.

RBC economist Paul Ferley commented that the strengthening US economy and weaker Canadian dollar should provide a boost to exports and business conditions for manufacturers. However, the US manufacturing sector experienced a similar slowdown in July. The Institute for Supply Management (ISM) monthly index of factory activity fell from 53.5 to 52.7. The ISM also uses 50 as its threshold between growth and contraction.

July’s survey highlights another steady upturn in manufacturing production and new order volumes, which leaves the sector well placed to remain on a recovery footing through the third quarter of 2015. Exchange rate depreciation and stronger U.S. consumer spending continue to help shore up demand for Canadian manufactured goods, in turn offsetting some of the momentum lost from weaker energy sector spending patterns.

In Canada, despite modestly rising production, there was a drop in employment in the manufacturing sector. Backlogs of work also decreased for the eighth consecutive month. Ontario recorded the best performance in overall manufacturing conditions and job growth, while Alberta and British Columbia had the worst.

Nevertheless, the president and CEO of the Supply Chain Management Association characterized the July survey results as evidence of “another steady upturn in manufacturing and new order volumes.” The sector is “well placed” for a recovery through the third quarter of 2015, said Cheryl Paradowski.

Did you miss this?

Other Popular Stories

  • Cars and aerospace boosted Canada's manufacturing sales in November
  • Airborne wind turbine will rise to new heights
  • Strong manufacturing output lifts GDP in October
  • Real-time oil leak tracking with PAH sensor from Norwegian Geotechnical Institute can precisely measure hydrocarbons in water around oil wells
  • Delorean coming “Back to the Future” soon to return to our streets?
  • Two auto parts plants adding jobs in southwestern Ontario
  • Scientists use lab-grown crystals to create whiter LED light
  • Strong manufacturing rebound in February led by energy sector
  • Alberta's oil and gas rebounds - must contend with shortage of workers
  • Robot from Oil & Gas Technology Centre may improve safety, enhance productivity and reduce costs for offshore oil and gas projects
  • China Opens Solar Highway, Closes in Under a Week
  • Researchers Create Negative Mass Superconductor
  • Pratt & Whitney Canada announces helicopter engine contracts
  • Optimism abounds for Canada's LNG future after Pacific Northwest approval
  • Waste-reduction law puts responsibility for products' end-of-life costs on manufacturers
  • Ontario wants to be heard at Enbridge pipeline hearings
  • Carbon Nanotubes — from energy storage to automotive parts, from electromagnetic shields to biomedical applications — light, stable, durable
  • Bombardier flies new CSeries jet for first time
  • U.S. and Mexico resume talks for NAFTA auto agreement — door open for Canada to return to negotiations
  • Ontario and Saskatchewan criticizes the Federal Canadian Minerals and Metals Plan in a joint official statement
Scroll to Top