Canada manufacturing PMI shows growth edged up in August

Tue Sep 3, 2013 9:29am EDT
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* PMI index 52.1 in August against 52.0 in July

* Input costs climb on rise in raw material prices

By Alastair Sharp

TORONTO, Sept 3 (Reuters) - Growth in the Canadian manufacturing sector was marginally stronger in August than it was the previous month, a survey showed on Tuesday, with employment in the sector expanding at the fastest pace in three months.

The RBC Canadian Manufacturing Purchasing Managers' index (PMI), a gauge of manufacturing business conditions, edged up to 52.1 in August after adjusting for seasonal variation from 52.0 in July.

A reading above 50 shows growth in the sector.

It was the fifth straight month of expansion, though output prices slipped for a second straight month and input prices jumped the most since March.

Royal Bank of Canada (RBC) said the data showed resilience in the face of recent economic shocks and that further gains were likely.

"We expect that improving U.S. demand will continue to provide a boost to the manufacturing sector for the balance of the year," RBC's chief economist, Craig Wright, said in a statement accompanying the data.   Continued...