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Canada PMI March 2024

Canada: Canada manufacturing PMI picks up in March

The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) rose to 49.8 in March from 49.7 in the prior month. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer deterioration in manufacturing sector operating conditions compared to the previous month.

The marginal improvement in the PMI was primarily due to the softest fall in new orders for 13 months. However, firms continued to focus on destocking amid subdued market demand and client hesitancy, while there was a seventh consecutive monthly drop in new export orders.

On the pricing front, input costs rose significantly, marking the greatest increase since the previous November, driven by supply chain delays and lengthened delivery times for inputs. Despite these cost pressures, the subdued market environment limited firms’ ability to raise their selling prices, which rose at the weakest rate since June 2023. Meanwhile, business sentiment improved slightly with firms expressing confidence in future output growth, driven by expectations of better economic conditions and new projects, although concerns about high interest rates tempering growth persisted.

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