The Toronto skyline in Canada

Canada PMI January 2022

Canada: Manufacturing PMI dips in January

In January, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) dipped to 56.2 from December’s 56.5. Consequently, the index remained above the neutral 50-threshold, but signaled a marginally weaker improvement in manufacturing operating conditions from the previous month.

Output growth eased in January, due to lingering Covid-19 restrictions, but remained upbeat nonetheless. Meanwhile, in the same month, new orders growth accelerated and headcounts increased relative to the previous month. On the other hand, unfavorable weather conditions, port congestions and truck shortages led to a rise in suppliers’ delivery times. On the price front, both input and output prices continued to rise in January, but at a slightly softer rate compared to December.

Commenting on the latest print reading, Shreeya Patel, an economist at IHS Markit, noted:

“Covid-19 yet again hit performance with output growth slowing notably. Tighter restrictions, among other issues, led to weak input availability and poor transportation conditions. Nevertheless, there is a further indication that restrictions will start to ease across the provinces in the months ahead. Fortunately, Canada boasts a high vaccination rate, which has allowed for growth to continue in the manufacturing sector despite a resurgence in cases.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest