Canada: IHS Markit manufacturing PMI continues to weaken in February
March 1, 2019
In February, the seasonally-adjusted IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 52.6 from 53.0 a month earlier, marking a 26-month low. However, the index remained above the 50-point threshold, signaling an ongoing expansion in manufacturing activity.
February’s reading reflected weaker job creation and a stagnation in pre-production inventory levels. Survey respondents cited global trade frictions and increased economic uncertainty as reasons that may have led to delayed decision making among some businesses. Moreover, certain manufacturers noted subdued export competitiveness amid higher prices for steel-intensive products. Nevertheless, new order growth rebounded in February and production volumes increased at a marginally faster rate compared to January.
Author: Steven Burke, Economist