Canada: Manufacturing PMI rises in August
The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) improved to 49.5 in August from 47.8 in July. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer deterioration in manufacturing-sector operating conditions compared to the previous month.
Key drivers behind the latest PMI reading include notably weaker contractions in both output and new orders. Despite this, there was a modest reduction in employment after payroll growth in July. Shipping delays, particularly related to ocean freight, continued to exacerbate the challenges faced by manufacturers.
August saw an acceleration in input cost inflation to its sharpest level since April 2023, driven by higher prices for various inputs, amid unfavorable exchange rate movements and high shipping costs. This led manufacturers to increase their output charges at the steepest pace in nine months. Finally, business sentiment remained positive, albeit below trend.