TORONTO, Dec. 2, 2013 /CNW/ - Business conditions in Canada's manufacturing sector continued to improve strongly in November, according to the RBC Canadian Manufacturing Purchasing Managers' Index™ (RBC PMI™). A monthly survey, conducted in association with Markit, a leading global financial information services company, and the Supply Chain Management Association (SCMA), the RBC PMI offers a comprehensive and early indicator of trends in the Canadian manufacturing sector.
The seasonally adjusted RBC PMI - a composite indicator designed to provide a single-figure snapshot of the health of the manufacturing sector - registered 55.3 in November, signalling a strong improvement in Canada's manufacturing business conditions. Although the headline index was down slightly from October's 55.6, it was consistent with one of the fastest rates of growth for over two years.
The RBC PMI showed that a marked rise in new order volumes, partly reflective of new client wins, supported the strongest increase in output since March 2011. Concurrently, firms hired additional staff in November, although the rate of employment growth eased to a four-month low. On the price front, inflationary pressures remained muted with the latest rise in input costs, in particular, weaker than October's seven-month peak.
"Canadian manufacturing conditions continued to be quite favourable in November, although we saw a slight dip compared to the gains the sector made in October," said Craig Wright, senior vice-president and chief economist, RBC. "While the U.S. government budget impasse negotiations did not come to a firm resolution, recent reports suggest that the fourth-quarter hit to U.S. growth will be limited following a solid gain in the third quarter. A slow and steady increase in U.S. growth will play a big role in setting the stage for a continuation in the recent momentum we have seen in Canadian manufacturing activity over the past few months."The headline RBC PMI reflects changes in output, new orders, employment, inventories, prices and supplier delivery times. Key findings from the November survey include:
- marked rates of output and new order growth;
- rate of job creation eases to four-month low; and
- input price inflation remains subdued.
- Business conditions improved across all four Canadian regions. Alberta & British Columbia saw the strongest improvement over the month.
- Alberta & British Columbia posted the fastest rise in new orders.
- Ontario saw no change in exports, but this was an improvement from a reduction one month previously.
- Manufacturing employment was little-changed in Quebec .
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