Canada: Manufacturing PMI eases slightly in September, but remains firmly in expansionary territory
October 1, 2021
In September, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell from 57.2 in August to 57.0. Nevertheless, the index remained well above the neutral 50-threshold, signaling another strong improvement in manufacturing operating conditions from the previous month.
In September, the PMI suggested momentum in manufacturing sector activity ticked down slightly from the previous month due to a more moderate expansion in new orders and output. Moreover, employment levels also continued to rise, but at the softest rate since February. On the price front, output prices rose at the fastest pace on record, and predominately due to heightened input price inflation, which firms mostly passed on to clients.
Commenting on the latest print reading, Shreeya Patel, an economist at IHS Markit, noted:
“Canada's manufacturing sector recorded another healthy improvement in operating conditions in September, despite infection rates rising in key provinces. Consumer demand remained strong and in turn supported output growth.”
Author: Steven Burke, Economist