Fall economic update
CME Director of Economics and Policy Mike Holden's Manufacturing Pulse fall update outlines the Q2 performance of Canada's manufacturing and trade sectors.
Highlights from the report which can be downloaded below include:
- Manufacturing sales rose by 0.5 per cent in the second quarter of 2015 after steep declines in each of the last two quarters. Momentum appears to be building as July numbers were also strong.
- Manufacturing employment has been slowly declining, with 15,000 jobs lost from May through August. Losses were heaviest in Quebec, Alberta and BC. Small businesses were hardest hit, while employment in medium-sized companies is up.
- In spite of growing sales, forward-looking indicators in manufacturing are uncertain. New, non-aerospace orders were down 2.3 per cent in Q2 2015. Inventories are also rising in many industries.
- Economic conditions in Canada and the US are improving, but there is growing uncertainty about the Chinese economy. That uncertainty is impacting commodity prices, financial markets and demand in that country.
- Manufacturing competitiveness deteriorated in Q2 2015. Productivity fell 1.4 per cent, adding to the 0.8 per cent decline in the previous quarter. Meanwhile, unit labour costs rose 4.5 per cent.
Download the Manufacturing Pulse fall economic update
For more information contact Brad Fougere