The rate of growth in the manufacturing sector was up in both Canada – which saw an eight-month high – and British Columbia in July, according to the results of an RBC survey published August 1.
RBC’s Canadian Manufacturing Purchasing Managers’ Index (PMI) showed overall growth in business conditions in the manufacturing sector, growing to 54.3 in July from 53.5 in June. This marks the highest value since November 2013.
PMI values over 50 indicate an overall increase in the manufacturing sector, while values below this number indicate contraction.
“Canadian manufacturers have made a bright start to the third quarter of 2014, as highlighted by stronger production growth and another improvement in sales volumes during July,” said Cheryl Paradowski, president and chief executive officer of the Supply Chain Management Association.
“Therefore, the latest survey suggests a decisive shift towards faster growth across the manufacturing sector this summer, with output, new business and employment all rising at the fastest rates seen so far this year.
“Moreover, business conditions are improving against a backdrop of softening cost pressures, which in turn contributed to the slowest increase in manufacturers’ output charges since the end of 2013.”
For the purposes of this monthly survey, RBC groups Alberta and B.C. together. The region saw an increase in PMI from 53.9 in June to 54.8 in July.
