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The pace of Canadian manufacturing activity growth fell for a third straight month in June as both production and new order volumes slowed, according to data released Monday.
The RBC Canadian Manufacturing Purchasing Managers' Index, launched last month and produced by research firm Markit, fell to 52.8 in June from 54.8 in May.
The latest reading was above the level of 50 that separates growth from contraction, and signaled that overall business conditions are still modestly improving.
The PMI is produced with input from the Purchasing Management Association of Canada. Data collection from some 400 companies, small and large, began in October 2010.
Business conditions within the Canadian manufacturing sector did slightly better in June. This reflected new order and output growth, although both weakened since May.
"The moderation is consistent with the trends we are seeing around the globe pointing to a temporary soft patch in the economic recovery," Craig Wright, chief economist at Royal Bank of Canada, said in statement.
Wright noted the weakness was spread broadly across all of the survey components and across the Canadian regions.