Canada's production falls for 10th straight month: S&P Global

By Ovunc Kutlu

ISTANBUL (AA) - Production in Canada has fallen for the 10th consecutive month in May, S&P Global said Monday in a report.

"Canada’s manufacturing sector experienced another subdued performance," said the global data provider. "Output and new orders both continued to fall, and at faster rates, whilst firms cut their buying activity given sufficient stock at their plants."

The North American country's Manufacturing Purchasing Managers’ Index (PMI) slightly fell to 49.3 in May, declining 0.1 point from 49.4 in April.

The index, which measures the activity level of purchasing managers in the manufacturing sector, was estimated to come in at 50.2, according to market expectations.

A reading above 50 indicates expansion and below 50 shows contraction.

The decline in production last month was also the steepest of this year so far, said the report, adding: "For new orders, the decline was the sharpest in four months."

"Output and new orders continue to fall, and perhaps more worryingly, to stronger degrees than in April," said Paul Smith, an economics director at S&P Global Market Intelligence. "Firms continue to report subdued market demand, characterised by uncertainty and a general unwillingness to commit to new business."

"Input costs indeed rose at a marked pace, but more reassuringly to a degree that remains well below average," he added.