The RBC Canadian Manufacturing Purchasing Managers’ Index (PMI), released Monday, fell to a seasonally adjusted 47.5 in December from 48.6 in November. This was the lowest level for the survey that goes back to 2010.
In the US, the ISM manufacturing index indicated contraction in December, according to the Institute of Supply Management also Monday. The PMI was at 48.2 per cent in December, down from 48.6 per cent in November. The employment index was at 48.3 per cent, down from 51.3 per cent in November, and the new orders index was at 49.2 per cent, up from 48.9 per cent.
Manufacturing Index, Canada and US
“Business conditions in the Canadian manufacturing sector fell at a survey-record pace in December as weaker domes- tic demand and ongoing uncertainty in the energy sector continues to take its toll,” said Craig Wright, senior vice-president and chief economist, RBC. “Across Canada, Alberta, and BC experienced the sharpest deterioration in conditions, while Ontario continued to be a national bright spot, posting a sustained rise in output production. As the US economy strengthens, we expect to see improvements in Canadian manufacturing sector activity levels.”
US economic activity in the manufacturing sector contracted in December for the second consecutive month, while the overall economy grew for the 79th consecutive month, said the latest Manufacturing ISM®.