Canada RBC Manufacturing PMI dropped to 49.1 in August, down from 50.2. Markit noted that production fell amid a sustained drop in new work to lowest since December 2015. Also, business optimism eased to a three-and-a-half year low.
Commenting on the PMI data, Tim Moore, Economics Associate Director at IHS Markit said:
“Canadian manufacturers reported a setback for business conditions in August, following the slight improvement seen during the previous month. New orders declined at the fastest pace for more than three-and-a-half years amid lower export sales, weakness in the automotive sector and reports citing softer demand from energy sector clients.
“August data also signalled a slide in growth projections across the manufacturing sector, with business optimism falling to its lowest level since early-2016. Concerns about the US-China trade war and rising global economic uncertainty were often cited by survey respondents.”
