Figures released Tuesday show that Canada’s manufacturing sector turned down again in August, with activity contracting as output and employment declined.
The RBC Canadian Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, fell to a seasonally-adjusted 49.4 last month from 50.8 in July. A reading below 50 indicates growth in the sector contracted.
So far this year, the index has been below 50 in five out of eight months. Oil-exporting Canada has been hit by a slide in crude prices and the Bank of Canada has cut interest rates twice this year to try to stimulate the economy.
The forward-looking new orders component edged down to 50.3 from 50.9, while the employment sub-index fell to its lowest level since February.
