Figures released Tuesday showed the pace of growth in Canada's manufacturing sector eased in August for the second straight month as slower growth in new business offset the strongest expansion of production volumes in nearly eight years.
The IHS Markit Canada Manufacturing Purchasing Managers' index, which measures manufacturing business conditions, dipped to a seasonally-adjusted 56.8 last month from 56.9 in July. The index reached a survey-record high of 57.1 in June.
Even so, a reading above 50 shows growth in the sector.
The output index climbed to its highest since December 2010 at 57.2, from 56.4 in July. Markit also said manufacturers pointed to rising customer demand and increased operating capacity at their plants.
The new orders index fell to 55.7, a four-month low, from 57.2 in July amid evidence that heightened business uncertainty and global trade tensions were holding back spending decisions.
Markit went on to say increased demand in the energy sector helped boost export sales but there were reports that U.S. trade tariffs had dented competitiveness in the period.
U.S. tariffs on Canadian steel and aluminum went into effect on June 1.
The output prices index dipped to 61.3 from a survey-record high of 62.8 in July, while the input prices index rose to its highest in more than seven years at 73.7 from 71.6.
