The latest RBC Canadian Manufacturing Purchasing Managers Index survey pointed to another downturn in overall business conditions, with output, new orders and employment all declining since the previous month. What is more, new export sales dropped for the first time since April, with survey respondents noting that weaker global economic conditions had weighed on new business volumes.
Meanwhile, input costs rose at a sharp and accelerated pace in October, which placed pressure on operating margins and contributed to a further slight increase in factory gate charges.
A monthly survey, conducted in association with Markit, a leading global financial information services company, and the Supply Chain Management Association, the RBC PMI offers a comprehensive and early indicator of trends in the Canadian manufacturing sector.
Adjusted for seasonal influences, the RBC Canadian Manufacturing PMI posted 48.0 in October, down from 48.6 in September and below the neutral 50.0 threshold for the third month in a row. Moreover, the latest reading signaled the sharpest rate of deterioration since the survey began in October 2010.
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