"Despite this strengthening, however, the pace of growth is modest and suggests a limited prospect of any further materially downward pressure being exerted on the unemployment rate"
- Paul Ferley, assistant chief economist at RBC Economics
Manufacturing sales in Canada jumped more than expected in November, adding to signs that the economy growing amid a string of disappointing data and weak global demand for the country's goods. Manufacturing sales increased 1.7% in November to $49.9 billion, reaching the highest level since May 2012. The boost was mostly provided by the significant gains in the transportation equipment, primary metal and chemical industries. Sales rose in 12 of 21 industries monitored, which are representing about two-thirds of the manufacturing sector. At the same time, sales of durable and non-durable goods increased by 2.7% and 0.8%, respectively.
"Despite this strengthening, however, the pace of growth is modest and suggests a limited prospect of any further materially downward pressure being exerted on the unemployment rate," said Paul Ferley, assistant chief economist at RBC Economics in a research note. "As a result, the Bank of Canada is likely to continue to keep monetary conditions highly accommodative."
"Several regions of Canada continue to perform well, but businesses across the country need to remain adaptable to change," BMO commercial banking senior vice-president Steve Murphy said.
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