Canadian manufacturing PMI growth slows, at 9-month low, in Oct

Thu Nov 1, 2012 9:29am EDT
 
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* Weakest reading since January

* PMI falls to 51.39 in Oct from 52.37 in Sept

* New orders, output, employment all slow

By Claire Sibonney

TORONTO, Nov 1 (Reuters) - Canadian manufacturing growth slowed for a fourth straight month in October and hit a nine-month low, according to data released on Thursday, indicating that the third quarter's underwhelming economic performance may continue into the end of the year.

The RBC Canadian Manufacturing Purchasing Managers' Index was 51.39 last month, compared with 52.37 in September. It was the weakest reading since January.

Still, the index was above the 50 mark that separates expansion from deterioration.

"Canadian manufacturing continued to weaken in October, though the PMI measure is still indicative of growth in the sector, which is in contrast to flat to declining activity in most other countries," Craig Wright, chief economist at Royal Bank of Canada, said in a statement.

The output component of the index saw its smallest month-over-month increases since January. New orders were also weak.   Continued...