OTTAWA, Reuters - The Canadian manufacturing sector barely grew in September as activity fell to its lowest level in seven months, suggesting the weakness the industry has seen may persist through the rest of the year, a report showed on Monday.
The RBC Canadian Manufacturing Purchasing Managers’ Index (PMI), a measure of manufacturing business conditions, slipped to a seasonally adjusted 50.3 last month from 51.1 in August.
A reading above 50 indicates growth in the sector.
The forward-looking new orders component fell to 49.7 from 50.5. Export orders, which had been a source of strength early in the year, contracted further.
“The renewed drop in new orders raises concerns that this soft patch may continue into the final quarter,” said Tim Moore, senior economist at survey compilers IHS Markit.
Reporting by Leah Schnurr; Editing by Meredith Mazzilli