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Manufacturers post solid gains in December

Published by Steve Coleman on January 04, 2012

A December survey of Canadian manufacturers says business was the best it has been in eight months.

The latest RBC Canadian Manufacturing Purchasing Managers' Index says more client demand helped boost their numbers during the final month of 2011. Both new orders and output were reported to have taken a strong jump during the month.

New export orders also climbed for December, ending two-straight months of declines.

The bank also says the raw price of commodities didn't rise as fast in December as it did at other times in the survey's 15-month history.

To put a number to the situation, RBC pegged the value of its indicator survey at 54.0 in December. That was up from the 53.3 figure given for November. Anything more than 50.0 is considered growth. A number less than 50.0 is considered a contraction in Canadian manufacturing's overall health.

"The Canadian manufacturing sector has demonstrated its resilience as the global economy faces some strong headwinds," said Craig Wright, senior vice-president and chief economist, RBC in a news release. "After some temporary setbacks in 2011, Canada's economy is set to grow by 2.5 per cent in 2012, provided that European policymakers contain the sovereign debt crisis in that region."

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