Canada PMI August 2020

Canada

Canada: Manufacturing PMI hits a two-year high in August

September 1, 2020

In August, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) increased from 52.9 in July to 55.1. Therefore, the index remained above the neutral 50-threshold, signaling an improvement in manufacturing operating conditions from the previous month.



August’s result reflected stronger expansions in output and new orders as businesses continued to reopen. Moreover, employment levels also increased, foreign demand improved. On the price front, input prices increased notably, while output prices increased in tandem. Furthermore, business sentiment remained optimistic; however, it remained below the series’ average in August.

Commenting on the print, Shreeya Patel, economics director at IHS Markit, noted:



“Rising workloads, and signs of capacity pressures emerging were good news for jobs. Employment increased at the fastest rate since the start of 2019. That said, it was not all positive in August, delivery times lengthened at another marked rate amid ongoing COVID-19 disruption, while there were signs of building inflationary pressures.”

FocusEconomics Consensus Forecast panelists expect fixed investment to decline 10.7% in 2020, which is down 0.6 percentage points from last month’s forecast. For 2021, our panel projects fixed investment to increase 2.8%.


Author:, Economist

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Canada PMI August 20 20

Note: IHS Markit Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit.


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