Canada: Manufacturing PMI records worst reading since June 2020 in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 52.5 in July from June’s 54.6. July’s result marked the worst reading since June 2020. As such, the index remained above the 50.0 no-change mark, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
July’s dip was driven by the first contractions in output and new orders in nearly two years, a faster decline in export orders, and slower growth in purchasing activity and employment. More positively, both input and output price inflation moderated in July, in line with CPI data released by Statistics Canada, and firms remained optimistic about output in the year ahead.