Canadian manufacturers see stronger exports, but overall outlook bleak: RBC

TORONTO -- A monthly survey of purchasing managers suggests the outlook for Canada's manufacturing sector remains negative but is not quite as dire as in December because of a pickup in export demand.

See Full Article

The RBC Canadian Manufacturing PMI registered 49.3 in January, just below the 50-point mark that indicates a neutral outlook.

Royal Bank noted in its commentary that the December reading of 47.5 was a record low for the five-year-old index. Any measure below 50 is considered a negative outlook for the coming months.

January also marked the sixth negative month in a row, the longest stretch since the RBC index began in late 2010.

Similar indexes published in the United States and China also showed negative readings Monday.

The Canadian manufacturing index showed the overall business conditions deteriorated, reflecting lower output, new business and employment in January.

The one area of improvement was a rebound in export sales, which offset some of the downturn in domestic demand.

"Ontario manufacturing continues to be the bright spot, while the sharp drop in performance in Alberta and B.C. suggests that heightened economic uncertainty and ongoing declines in capital spending are weighing on the economy," RBC chief economist Craig Wright said in a statement.

RBC publishes the index in conjunction with Canada's Supply Chain Management Association and Markit, a global financial information company that compiles similar indexes for several countries and regions.

"After December's record low, Canada's manufacturing sector was close to stabilizing in January, with improving exports a key ingredient at the start of 2016," said Cheryl Paradowski, SCMA's president and chief executive officer.

"Manufacturers saw a solid upturn in new work from abroad, which helped support production levels but didn't quite offset sustained weak domestic sales."

"The figure for Canada as a whole continued to mask diverging fortunes provincially, notably between the export-led manufacturing rebound in Ontario and the oil-related downturn faced by a large proportion of manufacturers in Alberta and British Columbia," Paradowski said in the statement.



Advertisements

Latest Economic News

  • Wind company owed $28M by federal government asks court to force payment

    Economic CTV News
    TORONTO -- A wind power company is going to court to try to get $28 million it is owed by the federal government over an Ontario offshore wind moratorium. Windstream Energy had a 300-megawatt project planned for an offshore wind project in eastern Ontario when the provincial government abruptly enacted the moratorium in February 2011. Source
  • Asian stocks drift higher as investors await Fed minutes

    Economic CTV News
    SEOUL, Korea, Republic Of -- Asian stock markets were mixed with subdued movements on Wednesday, getting little push from Wall Street's record high overnight, as investors awaited the Fed's latest meeting minutes due later in the day for clues about the U.S. Source
  • U.S. shutting down Dakota Access oil pipeline protest camp

    Economic CTV News
    BISMARCK, N.D. -- The Army Corps of Engineers' plan to close a Dakota Access pipeline protest camp that's been around for more than six months isn't likely to be the demise of on-the-ground opposition in North Dakota. Source
  • CRA's new fingerprinting policy could create travel problems for accused tax evaders

    Economic CBC News
    The Canada Revenue Agency has begun to record the fingerprints of every person charged with tax evasion, a move that could severely restrict foreign travel for anyone accused but not necessarily convicted of a criminal tax offence. Source
  • Alberta Energy Regulator names companies falling behind on pipeline safety

    Economic CTV News
    CALGARY - The Alberta Energy Regulator is making it easier for the public to see which oil and gas companies are falling behind on pipeline safety. The regulator launched a new pipeline reporting website Tuesday that lays out several pipeline safety ratings for all operators in the province over the past two years. Source
  • Wal-Mart keeps working to make inroads against Amazon

    Economic CTV News
    NEW YORK -- The nation's largest retailer keeps working to make headway against the largest online seller. Wal-Mart drew more shoppers to its namesake stores in the United States and its online sales soared 29 per cent in the fourth quarter, which covers the critical holiday shopping season. Source
  • Verizon forces Yahoo to cut sale price over hacking scandal

    Economic Toronto Sun
    SAN FRANCISCO — Yahoo is taking a $350 million hit on its previously announced $4.8 billion sale to Verizon in a concession for security lapses that exposed personal information stored in more than 1 billion Yahoo user accounts. Source
  • Seven-year-old girl's job application to Google catches CEO's eye

    Economic CTV News
    For seven-year-old Chloe Bridgewater, it’s never too early to get started on building your career. The girl from Hereford, U.K. penned a job application to Google CEO Sundar Pichai after seeing images of Google offices outfitted with bean bag chairs, go karts and slides. Source
  • French leftist lawmakers take EU-Canada free trade deal to court

    Economic CBC News
    More than 100 French left-wing lawmakers decided on Tuesday to appeal to the country's Constitutional Council to block a contentious free trade deal between the European Union and Canada. Supporters of the Comprehensive Economic and Trade Agreement (CETA) say it will boost economic growth and jobs on both sides of the Atlantic. Source
  • Feds may face 'rough' NAFTA renegotiation: former PM Mulroney

    Economic CTV News
    TORONTO - Former prime minister Brian Mulroney says the federal government may face a "rough negotiation" when it comes to NAFTA, but he believes Canada will nonetheless emerge with strong ties to the U.S. and Mexico. Source