Canadian Manufacturing Activity Is Finally Picking Up

While the RBC Canadian Manufacturing PMI has remained above 50, the index has been in decline since June 2012, which means growth has been decelerating.

January's release shows the RBC PMI ticked up slightly, from 50.4 to 50.5.

Here are the key points from the report:

• RBC PMI only slightly higher than the survey lows reported in November and December;
• output increases for first time in three months, albeit only marginally; and
• slowest rate of job creation in 12 months.

Here's a historical look:

The press release indicates that employment growth is weakening in the sector:

Employment in Canada's manufacturing sector increased in January, taking the current sequence of job creation to 12 months. However, the rate of growth has slowed continually since reaching a peak last May, with the latest expansion only marginal.

January 2012 marked the beginning of a sustained 6-month increase in Canada's PMI. We'll see if this uptick marks a repeat of this trend.