Canadian manufacturing PMI growth slips for 5th straight month

Mon Dec 3, 2012 9:29am EST
 
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* Weakest reading in survey's 2-year history

* PMI falls to 50.38 in Nov from 51.39 in Oct

* New orders, output fall, jobs growth slows

By Claire Sibonney

TORONTO, Dec 3 (Reuters) - Canadian manufacturing growth slowed for a fifth straight month in November and hit a more than two-year low, according to data released on Monday, signaling the third quarter's disappointing economic performance may persist for the rest of the year.

The RBC Canadian Manufacturing Purchasing Managers' Index was 50.38 last month, compared with 51.39 in October. It was the weakest reading since data collection began in October 2010, and came dangerously close to contraction.

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

"Minimal growth in the manufacturing sector in November likely reflects the continued global economic uncertainty," Craig Wright, chief economist at Royal Bank of Canada, said in a statement.

"We expect the economic weak patch to be short-lived, however. As the downside risks plaguing the global economy start to ease, so will some of the weight on Canadian export demand and the broader manufacturing sector."   Continued...