Canada manufacturing PMI strongest level in nearly a year

Mon Jun 3, 2013 9:33am EDT
 
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By Solarina Ho

TORONTO (Reuters) - Canada's manufacturing growth expanded at its fastest pace in nearly a year in May, according to data released on Monday, underpinned by new orders which pushed output back into growth mode for the first time in three months.

The RBC Canadian Manufacturing Purchasing Managers' Index was up sharply at 53.2 in May after adjusting for seasonal variation, rising from 50.1 in April.

A reading above 50 indicates an expansion in growth.

"The Canadian manufacturing sector perked up considerably in May, thanks to renewed vitality in new orders and job creation," said Craig Wright, chief economist at RBC, in a statement.

"As we navigate through the remainder of 2013, we expect the sector's performance to improve further, boosting Canadian growth."

The more robust pace of growth supported some other recent data which signaled a broader economy that was getting back on track after many months of disappointment.

Gross domestic growth data on Friday showed that rising exports helped revive the economy during the first quarter of 2013 to its fastest pace in six quarters, following a lethargic second half of 2012. The economy grew at an annualized rate of 2.5 percent between January and March.

Earlier this month, retail sales data saw a sharp rise in volume, indicating a more robust-than-expected economy, though other data, including housing and employment, painted a slightly more mixed picture.   Continued...

 
Workers piece together outerwear on the manufacturing floor of Canada Goose's facility in Toronto January 17, 2012. REUTERS/Fred Thornhill