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Canadian manufacturing sector returns to growth in March

Staff writer ▼ | April 4, 2016
Canadian manufacturers indicated a positive end to the first quarter, with production and overall new orders returning to growth after a sustained period of decline, according to the latest RBC PMI survey.
Canadian manufacturing
Canada   The seasonally adjusted RBC Canadian Manufacturing PMI
Stronger export demand was a key driver behind the rebound in manufacturing conditions, with new work from abroad rising at the joint-fastest pace since November 2014.

Survey respondents noted that exchange rate deprecation had encouraged greater focus on export markets, which helped to boost sales to U.S. clients in particular.

At the same time, manufacturers continued to experience strong input price inflation as suppliers passed on higher imported raw material costs, in turn contributing to another solid rise in factory gate charges in March.

A monthly survey, conducted in association with Markit and the Supply Chain Management Association (SCMA), the RBC PMI offers a comprehensive and early indicator of trends in the Canadian manufacturing sector.

At 51.5 in March, up from 49.4 in February, the seasonally adjusted RBC Canadian Manufacturing PMI posted above the critical 50.0 no-change threshold for the first time in eight months.

Moreover, although pointing to only a moderate improvement in business conditions, the index was the highest since December 2014.