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02.08.2016 14:14

Canadian manufacturing output improves in July

Canadian manufacturers indicated another improvement in business conditions during July, underpinned by modest rises in output, new orders and employment levels. However, there were signs of weaker demand from export markets, as highlighted by a renewed drop in new work from abroad. Meanwhile, exchange rate depreciation against the U.S. dollar continued to push up overall input costs in July, with survey respondents citing higher steel prices in particular. The headline figure derived from the survey is the Markit Canada Manufacturing Purchasing Managers' Index™ (PMI™), which is designed to provide timely indications of changes in prevailing business conditions in the Canadian manufacturing sector. PMI readings above 50.0 signal an improvement in business conditions, while readings below 50.0 signal deterioration. At 51.9 in July, the seasonally adjusted Markit Canada Manufacturing PMI was up fractionally from 51.8 in June and above the neutral 50.0 value for the fifth consecutive month. This signalled a moderate improvement in overall business conditions, but the latest reading was still weaker than the average since the survey began in October 2010 (52.5).

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