Business conditions are still on the way up, according to figures posted this morning by Canada's biggest bank.
The November RBC Canadian Manufacturing Purchasing Managers Index indicated that business conditions continued to improve significantly in the month albeit at a marginally lower pace relative to October. This was reflected in an index reading in November of 55.3 that is slightly lower than the 55.6 recorded in October. The PMI is calculated as a diffusion measure with any reading above 50 indicating improving business conditions in the manufacturing sector.
The higher the reading is above the breakeven level of 50; the greater is the pace of improvement. Sentiment has generally been improving since last November albeit in a step-function manner. Over the period from November 2012 to April of this year the index averaged only 50.4 rising to 52.4 over the period May to August. Over the last three months the index has averaged 55.0.
Related Stories
