TORONTO, June 2, 2014 /CNW/ - Manufacturers in Canada signalled the slowest improvement in overall business conditions in four months during May, largely reflecting a further moderation in output growth, 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.
At 52.2 in May, down from 52.9 in April, the headline RBC PMI remained above the neutral 50.0 mark, but eased to its lowest level since January. The index was also weaker than the 53.3 average since the survey began in late 2010.
"May's reading at 52.2 indicates that Canada's manufacturing sector is still being held back by sluggish global growth," said Craig Wright, senior vice-president and chief economist, RBC. "As we move forward, support for the sector is expected given easing economic uncertainty, improving growth prospects in the U.S. and a more competitive currency."
The headline RBC PMI reflects changes in output, new orders, employment, inventories, prices and supplier delivery times.Key findings from the May survey include:
- Output experienced weakest gain since August 2013
- New export order growth slowed
- Input cost inflation eased to four-month low
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