Decline reflects weaker output, new order and employment contributions.
Manufacturing conditions continued to improve, but at a slower pace as output and new orders rise at weaker rates.
PMI survey indicates higher levels of output, new orders and employment across the sector.
Scotiabank says Canadian auto sector will only add 0.2 percentage points to overall growth, compared to 0.7 in the US.
Will it boost manufacturing?
Output increase buoyed by rise in new order volumes, job creation and subdued input price inflation.
Conference Board forecasts overall mining output will grow by 91%, or 7.5% annually, until 2020.
Economists says political deadlock could shave five percentage points from US output, which is bad for Canadian exports.