ISTANBUL

Canada's manufacturing sector performance softened again in June, global data provider S&P Global said Tuesday in a report.

Both output and new orders declined, while companies saw a slight decline in employment, which marked the first reduction in net staffing levels since January, it said.

Purchasing activity was cut to a stronger degree, and firms saw unexpected growth in their inventory levels, while confidence in the future was the lowest of the year so far, it added.

Canada's Manufacturing Purchasing Managers' Index (PMI) was unchanged at 49.3 in June -- the 14th consecutive month to come in below the neutral level of 50.

A reading above 50 indicates expansion and below 50 shows contraction.

The index, which measures the activity level of purchasing managers in the manufacturing sector, was estimated to come in at 50.2, according to market expectations.

"The performance of the Canadian manufacturing economy remained subdued in June, with output, new orders, employment and purchasing all falling since the previous month," said Paul Smith, an economics director at S&P Global Market Intelligence.

"A positive from the latest survey is that price pressures appear broadly contained, with costs rising at a softer pace than in recent months and charges increasing only modestly," he added.