Canada's manufacturing sector expanded in November at the fastest pace in three months, boosted by a pick up in new orders and the strongest job creation in at least eight years, data showed on Thursday. The IHS Markit Canada Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 54.9 last month, its highest since August. In October, the index hit a 21-month low of 53.9.
A reading above 50 shows growth in the sector.
The new orders index rose to 53.7 from 52.2 in October, while the employment index climbed to 57.1, its highest since the survey began in October 2010, from 55.3. "The latest robust increase in staffing levels was widely linked to capacity pressures and a subsequent rise in investment spending across the manufacturing sector," said Christian Buhagiar, president and CEO, Supply Chain Management Association (SCMA).
"Survey respondents commented on a boost to sales from improving US economic conditions. However, there were also signs that worldwide trade frictions continued to hold back client demand," Buhagiar said.
The new export orders index has moderated from a recent peak of 55.9 in May. Still, it edged up in November to 53.2 from 52.6 in October. Lower oil-related prices has helped offset higher costs for imported materials, particularly metals, IHS Markit said. The input price index fell to a nine-month low of 64.9 from 66.1 October.