Metalworking Production & Purchasing Magazine - Canadian manufacturers more positive about economy

Canadian manufacturers more positive about economy

Canadian manufacturers and exporters are surprisingly upbeat about the economic outlook, according to a recent survey conducted by the Canadian Manufacturers & Exporters’ (CME). “This sentiment is a little surprising considering the wild rollercoaster ride manufacturers and exporters had in June, courtesy of a volatile currency,” says CME President & CEO, Jayson Myer in the CME's June Business Conditions Survey.“The outlook for orders and employment continues to be positive and I hope this trend continues.”

The CME's business conditions survey was conducted in the first three weeks of June with 608 companies participating. Although the survey notes that while most manufacturers and exporters surveyed in June are still reporting the value of their orders is lower than it was three months ago, results this month reinforce the beginning of a positive trend that started in May.

According to the survey, only 51% of companies reported that orders have fallen in value compared to three months ago, a 6% improvement over May.

"A majority-69%-of firms report that they expect the value of new orders to stay the same or increase in value over the next three months, a slight increase of 3% from May. Only 31% say that orders are likely to decrease between June, 2009 and September, 2009 (a slight improvement over 34% last month), and 24% expect to see orders increase, a slight drop from 28% last month," the CME survey states.

The survey also aniticipates that employment will also improve. "Thirteen per cent of companies expect to increase employment the next three months, which is on par with the results from the previous three surveys. The number of firms who are planning layoffs has decreased from 38% to 27%.

cme-mec.ca