The pace of growth in the Canadian manufacturing sector dipped in August as factory production and new orders cooled, though employment rose to a record high, data showed on Friday.
The Markit Canada Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, declined to a seasonally adjusted 54.6 last month from 55.5 in July. A reading above 50 shows growth in the sector.
Growth in new orders weakened to the slowest pace in eight months at 54.4, down from 56.4 the month before. Demand from abroad also lagged, with new export orders slipping to 50.9 from 52.7.
Manufacturing output declined to 54.3 from 56.3, though some survey respondents reported having a greater number of projects in the pipeline.
But the measure of employment rose to the highest level in the survey’s seven-year history, picking up to 56.5 from 54.9. Canada has seen a robust pace of job growth in the last year and the survey could spell further gains for the manufacturing sector.
The report came the day after Canada reported the best pace of economic growth in nearly six years for the second quarter.
Reporting by Leah Schnurr; Editing by Chizu Nomiyama