Canada: Manufacturing PMI expands at a series-record pace in December
In December, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) increased to 57.9 from 55.8 in November, which marked the highest level since the series began back in October 2010. The index remained well-above the neutral 50-threshold, signaling an improvement in manufacturing operating conditions from the previous month.
In December, the PMI increased robustly, driven by solid expansions in new orders, production and job creation. Moreover, backlogs of worked increased as did suppliers’ inventories, indicating firming domestic demand conditions. On the price front, input price inflation rose due to higher costs for raw materials, while output price inflation also increased in December.
Commenting on the print, Shreeya Patel, economist at IHS Markit, noted:
“Overall, the sector continues to recover from the second quarter downturn, although relatively high virus case numbers still pose a threat to the industry should restrictions tighten again.”