Canadian manufacturing data from Markit
- One year ago at 49.2
- Highest since Feb
- New orders 45.5 vs 37.9 prior
- Employment higher
- “Around 30% of the survey panel reported a fall in output during June, while approximately 27% signalled an expansion”
- Those reporting a decline in production overwhelmingly attributed it to weaker underlying demand conditions
- around 42% of the survey panel anticipate a rise in production volumes over the next 12 months, while 16% forecast a reduction.
Commenting on the latest survey results, Tim Moore, Economics Director at IHS Markit, said:
“The latest Canada Manufacturing PMI highlights a vastly improved situation in comparison to that seen over the previous three months. June data signalled that the overall downturn in output, order books and jobs eased to its least marked since the COVID-19 pandemic took hold.
“The proportion of survey respondents indicating a monthly drop in production has eased from 66% in April and 47% in May to only 30% during June. This shift in momentum has been driven by a phased reopening of factory operations and the restart of business activity among clients.
“Despite another improvement in their expectations for production during the year ahead, manufacturers continued to report highly subdued underlying demand in June, alongside widespread concerns about the global economic outlook.”
The demand story is one to watch.