Weakest since April 2013.
- New orders 51.0 vs 53.9
- Hiring 49.4 vs 52.9 prior
Anecdotal evidence from firms surveyed suggested softer demand in the oil and gas sector weighed on overall new orders last month, the report said.
The weakness is the ‘manufacturing’ in the oil sands but if there is a silver lining to the Canadian dollar drop, it’s the boost to the traditional manufacturing sector. I wouldn’t expect to see companies investing in new Canadian factories but it might drive some employment gains in the next few months or perhaps some plant re-openings.
Even in the oilsands, the lower Canadian dollar offers a discount for international firms who pay wages in Canadian dollars.
No reaction in USD/CAD after report.
USD/CAD orders:
- Bids from real money at 1.2610/10 with corporates buying at 1.2580. More at 1.2550 with stops below 1.2480 and 1.2450.
- Offers at 1.2775/00 with buy stops above.
