The RBC Purchasing Managers Index shows that Canadian factory orders rose in June, inching up to 54.8- its highest level since last September. The report found that both output and new orders rose strongly in June, even with the ongoing eurozone crisis’ dampening effects on the global economy. Manufacturing employment increased for the fifth successive month, while the rate of input price inflation slowed sharply to its weakest pace since October 2010.
Similar data has shown factory orders to be slowing down in the US, eurozone and Asia. However, Canada’s manufacturers are benefiting from a relatively strong domestic economy, and increased demand in the US for new cars. The strong manufacturing performance this year has been led by medium-sized companies with 50 to 199 employees, but smaller firms have also reported improvements.