Canada: Manufacturing PMI picks up slightly in October
November 1, 2021
In October, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 57.7 from August’s 57.0. Consequently, the index moved further above the neutral 50-threshold, signaling a stronger improvement in manufacturing operating conditions from the previous month.
In October, the PMI suggested momentum in manufacturing sector activity ticked up from the previous month due to a slightly stronger expansion in output and a faster rise in new orders. Moreover, employment levels also continued to rise at a robust pace. On the price front, output and input prices increased at an elevated rate.
Commenting on the latest print reading, Shreeya Patel, an economist at IHS Markit, noted:
“Concerns surrounding supply were reinforced with severe delivery delays and near-record increases in costs again evident in October. Firms responded by raising their stock levels at the quickest rate on record, which should sustain solid output levels over the next few months. Nevertheless, Canada's manufacturing sector has performed well over the course of the year, which was reflected in sentiment. Anecdotal evidence suggests firms are gearing up for another busy 12 months of trading.”
Author: Steven Burke, Economist