Canadian Manufacturing Rose in July

The pace of growth in Canadian manufacturing inched higher in July, data showed on Tuesday, as rising new orders and overall output offset a drag from export orders.

The RBC Canadian Manufacturing Purchasing Managers’ Index (PMI), a measure of manufacturing business conditions, barely rose last month to a seasonally adjusted 51.9 from 51.8 in June.

“Greater demand from domestic sources helped to offset slower export sales in July, especially for manufacturers of consumer goods,” said Tim Moore, senior economist at Markit, which compiles the monthly survey on behalf of Royal Bank of Canada.

The index of new export orders slipped to 48.4, below the 50 threshold that indicates growth and down from 50.2 in the previous month.

Those surveyed said subdued demand from across Asia played a role in the export slowdown.

The Bank of Canada is counting on non-energy exports to spur a broader economic recovery, but has been faced with a series of disappointments on that front in recent months.

via Globe and Mail

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza