Canada: Manufacturing PMI rises in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) rose from 48.8 in June to 49.6 in July. As a result, the index remained below the 50.0 no-change threshold, but signaled a slower deterioration in manufacturing sector operating conditions compared to the previous month.
July’s reading reflected rises in output and exports, and a weaker fall in new orders. However, firms cut jobs and purchasing activity, while both input and output price pressures picked up. Finally, business sentiment improved, with firms expecting market demand to rise ahead.
On prices, Paul Smith, economics director at S&P Global Market Intelligence, said:
“There was an intensification of price pressures as firms reported a myriad of inflationary factors in July. However, amid reports of growing market competition and with vendors seemingly having sufficient capacity to easily cope with demand, inflation rates remain broadly under control and well down on levels seen around the turn of the year.”