Canada: Manufacturing PMI falls in June
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in June from May’s 56.8. June’s result marked the worst reading since January 2021. As such, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
June’s dip was driven by slower growth in output, new orders, purchasing activity and employment. Moreover, export orders declined for the first time in four months, and sentiment deteriorated to a 17-month low. Input price inflation accelerated in June, leading to another sharp rise in output prices.
Shreeya Patel, economist at S&P Global Market Intelligence, said:
“The PMI dipped to the lowest for 17 months […] Global supply issues and steep price pressures were at the heart of the issue, and are expected to continue to disrupt the manufacturing economy this year.”