Drop follows a 1.2% rise in May.
Purchasing managers’ index falls to a four-month low in January.
It’s not all good news, as business investment slips 0.5% following a June increase of 5.4%.
But economic growth remains tepid, according to the Conference Board of Canada.
Factories ramped up production, stepped up hiring and received orders at a healthy clip.
Industrial output falls 0.7% after a 3.4% jump in July, but picking up.
RBC has revised its forecast for provincial real GDP growth to 1.3% in 2013, down from 1.7%.
US manufacturers have struggled this year, with output up only 1.8% in the last 12 months.