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.”
Author: Steven Burke, Economist