Despite the gloomy outlook for financial markets worldwide, the Canadian manufacturing sector grew in August, according to the RBC manufacturing purchasing managers index (RBC PMI).
The index noted a slight increase to 54.9 from 53.1 in July. RBC said the index reading was the highest in four months, and new work increased at the fastest rate since April.
The index, which is based on a monthly survey sent to purchasing executives in more than 400 industrial companies, also found that firms boosted their production levels and that the rate of input price inflation eased to an eight-month low.
On top of that, the rate of employment in the Canadian manufacturing sector increased in August, with nearly 22% of surveyed firms saying they hired new staff.
“The Canadian manufacturing sector is showing renewed strength in August, as increases in new work and production levels also boosted employment,” commented Paul Ferley, RBC’s assistant chief economist.
“Today’s report supports the view that the supply chain problems in manufacturing, which arose from the natural disasters that hit Japan in March, have started to reverse. This augurs well for a rebound in manufacturing activity over the second half of this year.”
Joel McKay
Twitter:jmckaybiv