August data signaled a renewed slowdown in output and new business growth across the Canadian manufacturing sector, according to figures released Thursday morning.
The Market Canada Manufacturing Purchasing Managers' Index, adjusted for seasonal influences, registered 51.1 in August, down from 51.9 in July, to signal a marginal overall improvement in business conditions. The headline index has now posted above the 50 no-change
mark for six months running, but the latest reading was the weakest recorded during this period.
Anecdotal evidence suggested that the tame demand conditions and strong competition for new work had acted as a brake on output growth.
Reflecting this, the latest upturn in new order volumes was much weaker than the 16-month peak seen in April.
In keeping with the trend for production and new orders, latest survey data pointed to a slower pace of job hiring during August. Higher levels of employment have been recorded for six months running, but the latest expansion was the slowest since March.
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