Cana­dian busi­ness records strong­est ex­pan­sion

The Pak Banker - - COMPANIES/BOSS -

The Fe­bru­ary RBC Cana­dian Man­u­fac­tur­ing Pur­chas­ing Man­agers' In­dex (RBC PMI) pointed to the strong­est ex­pan­sion in Canada's man­u­fac­tur­ing sec­tor since last Septem­ber, although the rate of growth was only mod­est.

A monthly sur­vey, con­ducted in as­so­ci­a­tion with Markit, a lead­ing global fi­nan­cial in­for­ma­tion ser­vices com­pany, and the Pur­chas­ing Man­age­ment As­so­ci­a­tion of Canada (PMAC), the RBC PMI of­fers a com­pre­hen­sive and early in­di­ca­tor of trends in the Cana­dian man­u­fac­tur­ing sec­tor.

The head­line RBC PMI - a com­pos­ite in­di­ca­tor de­signed to pro­vide a sin­gle-fig­ure snap­shot of the health of the man­u­fac­tur­ing sec­tor - in­di­cated a mod­est im­prove­ment in Cana­dian man­u­fac­tur­ing busi­ness con­di­tions in Fe­bru­ary. How­ever, at 51.7, the RBC PMI re­mained be­low the se­ries av­er­age (53.6), de­spite hav­ing risen from the near sur­vey-low of 50.5 in Jan­uary.

The RBC PMI found that both out­put and new or­ders in­creased in Fe­bru­ary, partly re­flect­ing greater de­mand and new client wins. The rates of growth were stronger than in Jan­uary, but weaker than their re­spec­tive se­ries av­er­ages. Higher vol­umes of new work en­cour­aged man­u­fac­tur­ers to hire ad­di­tional staff, with the rate of job cre­ation at a four­month high. Mean­while, the rate of in­put cost in­fla­tion slowed to a seven-month low and was mod­est in the con­text of his­tor­i­cal data.

The head­line RBC PMI re­flects changes in out­put, new or­ders, em­ploy­ment, in­ven­to­ries, prices and sup­plier de­liv­ery times.

"Growth in the Cana­dian man­u­fac­tur­ing sec­tor gained mo­men­tum in Fe­bru­ary and, with pan­el­lists ex­press­ing an op­ti­mistic busi­ness out­look, this ex­pan­sion may con­tinue to strengthen in the coming months" said Cheryl Parad­owski, pres­i­dent and chief ex­ec­u­tive of­fi­cer, PMAC. "At the moment, how­ever, growth re­mained be­low par, with both out­put and new or­ders in­creas­ing only mod­estly over the month."

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