Canada: Manufacturing PMI hits an eight-month high in October
In October, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) inched up to 51.2 from 51.0 in September. The index reached the highest level since February, and subsequently remained above the neutral 50-threshold signaling an improvement in manufacturing operating conditions.
October’s uptick reflected a quicker pace of growth in output and new orders, while employment levels increased, albeit at a softer pace. That being said, new export business fell in October, and respondents mainly noted intense competition and subdued global trade conditions as the key sources of drag on factory activity. On the price front, input cost inflation accelerated in October, while output prices ticked up only marginally. Meanwhile, manufacturers’ outlooks on future operating conditions improved in October due prospects of an improvement in global trade conditions over the next 12 months.
Commenting on October’s print, Tim Moore, economics associate director at IHS Markit, noted:
“Rising domestic demand has underpinned the gradual recovery in new work since the summer, but export sales remain relatively sluggish against a backdrop of weaker global trade conditions.”