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2016.06.0210:49:00UTC+00Pace of Growth in Canadian Manufacturing Sector Little changed in May

Data released on Tuesday showed the RBC Canadian Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, dipped to a seasonally adjusted 52.1 last month from 52.2 in April. It was the third month in a row the index has been above the 50 threshold that indicates growth in the sector.

Data showed that the Canadian economy is struggling to gain momentum. Although the output index edged up to 52.8 from 52.1, new orders pulled back to 51.9 from 52.4 and employment slipped to 52.2 from 52.4. Export orders shrank to 49.1 from 51.0.

"Decline in export sales raises questions about Canada's transition to a more export-led expansion," said Craig Wright, chief economist at RBC

The Canadian economy continues to struggle with the impact of cheaper oil, a major export for the country. Data bodes poorly for a second quarter that is expected to be further impacted by Alberta's wildfires.

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