The pace of growth in the Canadian manufacturing sector edged up in August to a nine-month high, helped by modest improvement in new orders and employment, data showed on Tuesday.
The RBC Canadian Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 54.8 last month from 54.3 in July.
It was the strongest level since last November. A reading above 50 shows growth in the sector.
“The momentum in Canada’s manufacturing sector is clearly being sustained,” said Craig Wright, chief economist at RBC.
“We expect that Canadian manufacturers will continue to directly benefit from the strengthening U.S. economy, which has made and will continue to make positive strides.”
The forward-looking new orders measure eked out a gain to 55.3 from 55.2, with companies citing rising domestic spending and greater export sales.
The employment gauge gained to 54.4 from 53.8, which could bode well ahead of the more comprehensive labor market report due on Friday, which is forecast to show the economy added 10,000 jobs in August.
Reporting by Leah Schnurr, Editing by Chizu Nomiyama