Friday, October 31st8.2°C
23888

Warm weather fails to heat up cold manufacturing sector: RBC report

OTTAWA - A fresh survey on Canada's manufacturing industry suggests warmer weather is not yet having the desired effect of heating up the sector.

After a winter setback caused by harsh weather, the RBC manufacturing purchasing manager's index slid to 52.2 in May, down from 52.9 the previous month and 53.3 in March.

While still north of 50, which indicates growth, it was the lowest reading since January.

RBC economist Paul Ferley called the second consecutive moderation in the PMI index disappointing, although he said the return to more seasonal temperatures and improvements in the U.S. outlook should lift activity in Canada's manufacturing sector going forward.

And the news isn't any better south of the border. The U.S. manufacturing index also slid in May to 53.2, from 54.9 in April.

There was one encouraging indicator in the Canadian report — the pace of hiring in the sector edged up four-tenths of a point to 52.4.

Still, the good news in Canada's economy of late appears to be based mostly on future expectations.

Most key economic indicators have been tepid, flat or falling.

Employment fell by nearly 30,000 jobs in April, and on Friday, Statistics Canada reported the economy shrank to 1.2 per cent growth in the first quarter — less than half the speed in the previous three-month period.

Analysts believe the Bank of Canada will need to maintain a dovish stance on interest rates this week, given that the economy still has yet to achieve a sustainable and robust growth track.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14458.69-68.88
S&P CDNX771.65-9.42
DJIA17195.42221.11
Nasdaq4566.138+16.912
S&P 5001994.65+12.35
CDN Dollar0.8936+0.0002
Gold1172.60-26.00
Oil80.31-0.59
Lumber322.40-1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.0350.00
Russel Metals32.22-0.35
Copper Mountain Mining1.97-0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 



23028

FEATURED Property
180350220 - 180 Sheerwater Court, Kelowna, BC
10088870 bedrooms
$799,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22771