Toronto – Canada’s manufacturing expansion accelerated to a 15-month high in September 2013, according to the RBC Canadian Manufacturing Purchasing Managers’ Index (RBC PMI). A monthly survey, conducted in association with Markit, a global financial information services company, and the Supply Chain Management Association (SCMA), the RBC PMI offers a comprehensive and early indicator of trends in the Canadian manufacturing sector.
The seasonally adjusted RBC PMI – a composite indicator designed to provide a single-figure snapshot of the health of the manufacturing sector – rose to 54.2 in September, up from 52.1 in August. This indicated further improvement in manufacturing business conditions, with the rate of growth above the series average and the fastest since June 2012.
The RBC PMI found that both output and new order growth accelerated in September. In particular, the latest rise in total new work intakes was strong and the fastest since June 2012. This partly reflected the greatest increase in new export orders for two-and-a-half years. Meanwhile, the rate of job creation also quickened to a 15-month high, as firms hired additional staff to handle increased business activity.
“The global economy is gaining traction, and, with that, we are seeing increasing demand for Canadian exports – particularly from the manufacturing sector, which has contributed to the PMI reaching a 15-month high in September,” said Craig Wright, senior vice-president and chief economist, RBC.
“While challenges in the sector remain, this rebound is encouraging. An anticipated strengthening in global economic growth, particularly in the US, which is Canada’s largest trading partner, bodes well for manufacturing activity late this year and early next.”