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Market survey shows strong growth for August

Published by Steve Coleman on September 01, 2011

So much for the summer doldrums.

A survey of Canadian manufacturers in August says there was no such thing as a summer holiday for factories this year as both purchase orders and production increased for the month at a "marked pace."

The RBC Canadian Manufacturing Purchasing Managers Index says stronger demand and new clients helped bring in the business. Being busier turned out to be good for employees, too. Manufacturers reported hiring more people to cope with the rising demand.

At the same time, inflation took a rest on the backburner for the month. Both supply costs and output charges rose at a slower rate.

"The Canadian manufacturing sector is showing renewed strength in August, as increases in new work and production levels also boosted employment," said Paul Ferley, Assistant Chief Economist, RBC. "Today's report supports the view that the supply chain problems in manufacturing which arose from the natural disasters that hit Japan in March have started to reverse. This augurs well for a rebound in manufacturing activity over the second half of this year."

On a scale of 0-100, with 50 indicating no growth, August rang in at 54.9. July was 53.1.

The monthly index is a joint effort between RBC and Markit.

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