Canadian manufacturing PMI growth eases in June
By John Tilak
TORONTO (Reuters) - Canada's manufacturing growth slowed in June, pulling back from a sharp gain in May, suggesting that sluggish global demand is still weighing on the country's export-oriented economy.
The RBC Canadian Manufacturing Purchasing Managers' Index retreated to 52.4 in June, after adjusting for seasonal variation, from 53.2 in May. Despite the decline, the reading was the second highest since September.
A reading above 50 shows growth in the sector.
The index was supported by expansion of output and new orders, even though the pace of growth for both slowed from May.
"Canada's manufacturing sector continued to expand in June - a sign that the slowdown earlier this year was in fact a temporary blip," Craig Wright, chief economist at RBC, said in a statement.
"Moving into the second half of 2013, an anticipated strengthening in international demand will help the sector shake off its relatively lackluster performance it has recorded over the past year."
The data highlighted one of the Canadian economy's biggest challenges, a tentative global economic recovery that puts pressure on the country's exports.
Government figures released on Friday showed Canada's economy grew by just 0.1 percent in April from March, confirming that after a strong first quarter growth is slowing. The manufacturing sector grew by only by 0.2 percent, Statistics Canada said. Continued...