June’s data released by IHS Markit on Tuesday signaled another difficult month for the Canadian manufacturing sector. 

According to the report, the seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) edged up to 49.2 from May's 41-month low of 49.1.

Economists had expected the reading to drop to at 49.0. 

A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. 

According to the report, a sharper decline in production levels was the main factor weighing on the headline PMI in June. The downturn in output accelerated since the previous month and was the fastest since December 2015.