Canada manufacturing PMI hits 9-month high in June

Tue Jul 3, 2012 10:21am EDT
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By Jennifer Kwan

TORONTO (Reuters) - The pace of growth in Canadian manufacturing activity climbed in June to its highest level since September, helped by rising orders from abroad, according to data released on Tuesday.

The RBC Canadian Manufacturing Purchasing Managers' Index rose to a nine-month high of 54.85 in June from 54.72 in May. The average reading for the second quarter rose to 54.3 from 51.6 for the first three months of the year.

A reading above 50 indicates expansion.

"Conditions across the sector are favorable, and we expect that continued gains in employment and an uptick in exports will help contribute to further economic expansion in 2012," Craig Wright, chief economist at Royal Bank of Canada, said in a statement.

The report showed manufacturing employment in Canada increased for the fifth successive month in June, even though the rate of job creation slowed from the pace seen in May.

The report was in sharp contrast to U.S. manufacturing data released on Monday.

Manufacturing in the United States shrank in June for the first time in nearly three years as new orders plummeted, the figures showed, a signal that the U.S. economic recovery may be slowing.

The U.S. Institute for Supply Management said its index of national factory activity fell to 49.7 in June from 53.5 the month before, missing expectations of 52.0 in a Reuters poll of economists, and below even the lowest forecast.   Continued...

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