“In contrast to declining manufacturing conditions around the world, particularly in the U.S., Euro area and China, the Canadian manufacturing sector is continuing to grow” – Craig Wright, Senior VP & Chief Economist of RBC
According to the RBC PMI, a composite indicator of the healthiness of the manufacturing sector, there was firm progression in the Canadian manufacturing business conditions. The RBC PMI did however specify further increase in both new orders and output in August.
Firms linked the increase in new orders to greater client demand. Specifically, new export orders increased over the month, with an emphasis in orders from the U.S. Following the rise in new orders, Canadian manufacturers increased their production levels in August. Additionally, output has been rising in each month since October 2010.
“An uptick in new export orders, reflecting greater demand from the U.S., contributed to a faster expansion in total new orders in August.”– Craig Wright, Senior VP & Chief Economist of RBC