Canadian PMI relatively steady at 52.1 – RBC CM

Paul Ferley, Assistant Chief Economist at RBC Capital Markets, notes that the Canada’s May RBC PMI implied continued improvement in business confidence though a marginally slower pace relative to April’s reading of 52.2.

Key Quotes

“The RBC PMI indicated rising business confidence in the manufacturing sector for the third consecutive month. This followed declining sentiment in 11 of the previous 13 months. The continued improvement in sentiment occurred despite indications that extensive wildfires through Alberta in the month shutdown most of the major oil sand production facilities. However, most of the direct hit to growth will be in the mining rather than the manufacturing sector.

The report indicated continuing moderate gains in manufacturing output, employment and new orders. Growth in new orders did moderate slightly in May relative to April with the slowing attributed to weak demand for capital goods and cautious inventory accumulation. As well, the export orders measure in May indicated a slight drop in external orders after six months of sustained growth.”