Canada: Manufacturing PMI eases marginally in May, but remains in expansionary territory
In May, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell from 57.2 to 57.0 in May. Nevertheless, the index remained well above the neutral 50-threshold, signaling another strong improvement in manufacturing operating conditions from the previous month.
In May, the PMI suggested momentum in manufacturing sector activity ticked down slightly from the previous month due to a more moderate expansion in output. That being said, both new orders and employment levels rose at a quicker pace relative to the previous month. On the price front, output prices rose at the quickest rate on record due to elevated transportation and raw material costs.
Commenting on May’s reading, Shreeya Patel, an economist at IHS Markit, noted:
“A record increase in output prices suggests a large proportion of the burden was passed on to clients, but manufacturers will find the building inflationary pressures unsustainable.”