The S&P Global Canada Manufacturing PMI rose to 49.6 in July of 2023 from 48.8 in June, beating market expectations of 48.9 but marking a third consecutive month of contraction in the Canadian manufacturing sector, tracking the deteriorating momentum in North America as high borrowing costs pressure factory activity. New orders continued to decline from the previous month, albeit at a marginal extent, as firms noted that market uncertainty persisted and clients refrained from committing to new business. Still, factories continued to clear backlogs of work, enough to record a slight growth in output during July. Still, the unpredictable business climate drove firms to adopt cautious purchasing strategies and cut employment levels. On the price front, rising transportation costs and higher interest rates raised operating costs at the sharpest pace in three months, but higher competition limited the increase in output charges. Looking ahead, firms retained a positive business outlook. source: Markit Economics

Manufacturing PMI in Canada averaged 52.69 points from 2011 until 2023, reaching an all time high of 58.90 points in March of 2022 and a record low of 33.00 points in April of 2020. This page provides the latest reported value for - Canada Manufacturing PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Canada Manufacturing PMI - data, historical chart, forecasts and calendar of releases - was last updated on August of 2023.

Manufacturing PMI in Canada is expected to be 50.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Manufacturing PMI is projected to trend around 55.00 points in 2024, according to our econometric models.

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Canada Manufacturing PMI



Related Last Previous Unit Reference
Manufacturing PMI 49.60 48.80 points Jul 2023

Canada Manufacturing PMI
The IHS Markit Canada Manufacturing Purchasing Managers’ Index™ measures the performance of the manufacturing sector. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.
Actual Previous Highest Lowest Dates Unit Frequency
49.60 48.80 58.90 33.00 2011 - 2023 points Monthly
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News Stream
Canada Manufacturing Falls Less than Expected
The S&P Global Canada Manufacturing PMI rose to 49.6 in July of 2023 from 48.8 in June, beating market expectations of 48.9 but marking a third consecutive month of contraction in the Canadian manufacturing sector, tracking the deteriorating momentum in North America as high borrowing costs pressure factory activity. New orders continued to decline from the previous month, albeit at a marginal extent, as firms noted that market uncertainty persisted and clients refrained from committing to new business. Still, factories continued to clear backlogs of work, enough to record a slight growth in output during July. Still, the unpredictable business climate drove firms to adopt cautious purchasing strategies and cut employment levels. On the price front, rising transportation costs and higher interest rates raised operating costs at the sharpest pace in three months, but higher competition limited the increase in output charges. Looking ahead, firms retained a positive business outlook.
2023-08-01
Canadian Factory Activity Declines for 2nd Month
The S&P Global Canada Manufacturing PMI fell to 48.8 in June of 2023 from 49 in the previous month, marking the third month of contraction since the start of the year and tracking the bearish momentum in the Americas and Europe as high borrowing costs continue to hamper economic activity. Output continued to fall amid a depleted backlog of work and the lack of new orders, with surveyors stating that high interest rates and an uncertain economic outlook drove customers to postpone purchasing decisions. On a brighter note, the lack of demand for new input materials eased pressure on supply chain bottlenecks faced by vendors, driving input prices to only increase modestly. Output charges also rose to a smaller extent, with their growth remaining below averages from 2021 and 2022. In the meantime, workforce numbers edged lower. Looking forward, Canadian businesses remained confident that the economy will recover and that past investments will reap bring rewards.
2023-07-04
Canadian Manufacturing Activity Contracts in May
The S&P Global Canada Manufacturing PMI fell to 49 in May of 2023, slipping into the contractionary territory following the near stagnation of 50.2 in the previous month. Manufacturers reported another month of decline in new orders, pressured by elevated borrowing costs from the Canadian central bank while the high-inflation environment squeezed clients’ budgets. The persistently low demand levels meant that firms have been depending on backlogs of work to support production, but recent clearance in the latter resulted in a fresh contraction for Canadian manufacturing output. Furthermore, companies reduced purchasing levels for a tenth consecutive month and cut jobs for the first month in seven. On the price front, improved supply chains and a pullback in commodity prices drove input costs to fall for the first time in 11 years.
2023-06-01