Canada's Manufacturing Index Expands For January
Production and new orders increased for Canada in January, according to the Royal Bank of Canada’s manufacturing index. This survey is an indicator of manufacturing conditions with any score over 50.0 indicating expansion. The main indicator, RBC PMI, registered 50.6 in January, dropping from 54.0 in December. January’s reading indicated the weakest improvement in Canadian manufacturing business conditions since October 2010.
While production and new orders were up for January, employment fell for the first time in survey history, while input price inflation was at a five-month high, according to the report. The job losses were attributed to the slower rate of new order growth. Respondents attributed the improvement in conditions to greater demand, even while new export orders fell from the previous month. The fall in new export orders was partly due to weakness in the global economy. Output growth was the lowest since the survey began while backlogs dropped for the fourth month in a row.
Cheryl Paradowski, President and Chief Executive Officer, PMAC, said, "Canadian manufacturers reported a sharp rise in input costs at the beginning of 2012, even after adjusting for annual price increases. Raw materials such as metals and resins were highlighted as having increased in cost."
Source: Royal Bank of Canada