Canada: Manufacturing PMI jumps to a survey-record high in March
In March, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 58.5 from 54.8 in February. Therefore, the index moved further above the neutral 50-threshold, signaling an improvement in manufacturing operating conditions from the previous month.
In March, the PMI suggested momentum in manufacturing sector activity picked up from the previous month as strong expansions in new orders and job creation supported operating conditions. Moreover, output growth increased at the second-fastest pace since the survey began back in late-2010. On the price front, input price inflation accelerated in March, while output prices also increased. Lastly, optimism among firms rose to the highest level since May 2019 in March, likely tied to the vaccine rollout program gaining significant traction in recent weeks.
Commenting on March’s reading, Shreeya Patel, an economist at IHS Markit, noted:
“Overall, the Canadian manufacturing sector has performed well throughout the first quarter, but external pressures have somewhat weighed on the rate of expansion. Nevertheless, the sector is on course for a return to industrial production growth in 2021.”