Manufacturing business conditions in B.C. slowed in July, according to RBC Purchasing Managers’ Index (PMI) figures released August 1.
The PMI is a composite figure that is used to measure trends in the Canadian manufacturing sector that takes into account prices, output, employment, supplier delivery times and new orders.
The PMI in B.C. and Alberta decreased to 49.4 in July from 49.7 in June, the only two provinces to experience a deterioration of manufacturing business conditions in July. These provinces were also the only areas in the country to see no growth in employment over the period.
The PMI in Canada increased for the fourth consecutive month, but the rate of growth has slowed. The Canadian PMI was 52.0 in July, remaining above the 50.0 no-change mark for the fourth month in a row, indicating continuing improvement in Canadian manufacturing business conditions. This is down from 52.4 in June, a result of slowing growth.
“The Canadian manufacturing sector remained in expansion mode at the start of the second half of the year, with greater demand supporting ongoing growth of new orders and output,” said Cheryl Paradowski, Purchasing Management Association of Canada president and chief executive officer.
“However, the manufacturing expansion still remains fragile, as indicated by the RBC PMI falling to a three-month low that was lower than the series average.”
