OTTAWA, (Dec. 16, 2004) — Canadian manufacturers continued to face several challenges in October and signs suggest momentum has slowed, a Statistics Canada report says.

Major factors contributing to this reduced activity include the rising value of the Canadian dollar, which reached a 12-year high in late October, and the price of crude oil, which exceeded US $55 per barrel during the month.

Prices for other raw material inputs have also increased substantially. According to the raw materials price index, manufacturers paid 28 per cent more for their inputs in October 2004 compared with one year ago. The rising dollar, combined with high input prices may be limiting manufacturers’ ability to maintain production at levels seen during the early part of 2004.