Canadian manufacturers expect to cut back on production in this quarter due to concerns over declining orders, Statistics Canada said Friday as it released its latest business conditions survey.

Key factors influencing the manufacturers’ intentions this quarter include global uncertainty and the appreciation of the Canadian dollar.

The voluntary survey, to which almost 4,000 responded, requests manufacturers’ opinions on production impediments, finished product inventory levels, new and unfilled order levels, production and employment prospects in the coming three months.

In April, 31% of manufacturers stated they would decrease production in the second quarter, while only 19% expected to increase production, leaving the balance of opinion at -12.

In addition, 12 of the 21 major industry groupings, representing 60% of manufacturing shipments, indicated a negative outlook for the second quarter of 2003.