Canadian Industrial Profile: Machinery Manufacturing—Summer 2018

Document Highlights:

Uncertainty—The current trade outlook is clouded by uncertainty, which will weigh negatively on private sector investment intentions in the near term, with spinoff impacts for machinery manufacturers.

Exchange Rate—Although unresolved trade relationships loom over the outlook, one consequence has been continued weakness in the Canadian dollar, helping to offset some of the negative impacts of protectionism in the near term.

Business Investment—Despite the uncertain outlook, private sector investment in machinery and equipment has been remarkably upbeat over the past 18 months. Although gains are projected to slow over the year, the domestic market should be a source of modest growth for machinery manufacturers in the near term.