Canada: Manufacturing PMI improves in July
In July, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) jumped to 50.2 from 49.2 in June. The index thus landed above the 50-point threshold for the first time since March this year, signaling an improvement in manufacturing operating conditions.
July’s rebound reflected weaker declines in output and new orders, and increased pre-production inventories, while firms continued to take on more workers. On the price front, both input and output price inflation moderated in July, with input price inflation in particular falling to an over six-year low.
Going forward, the manufacturing sector will likely remain fragile in the coming months as a moderate global growth outlook weighs on demand for Canadian goods. That said, Trump’s decision to lift tariffs on Canadian steel and aluminum could provide some support.