Canada PMI August 2021


Canada: Manufacturing PMI rises slightly in August, but remains firmly in expansionary territory

September 3, 2021

In August, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) increased to 57.2 from July’s 56.2. Consequently, the index remained well above the neutral 50-threshold, signaling another strong improvement in manufacturing operating conditions from the previous month.

In August, the PMI suggested momentum in manufacturing sector activity ticked up slightly from the previous month due to a stronger expansion in output and new orders. Meanwhile, exports rose at a faster pace suggesting firming foreign demand. On the price front, input prices rose at the fastest pace on record, but output prices rose at a softer rate in August.

Commenting on the latest print reading, Shreeya Patel, an economist at IHS Markit, noted:

“Despite rising cases and regional lockdowns over the year, Canada's manufacturing sector has dealt well with demand shocks. Its main concern, as with many economies, has been price and supply chain pressures which have often stemmed from material shortages. With costs intensifying over the course of the month, prices look set to remain elevated for some time.”

FocusEconomics Consensus Forecast panelists expect fixed investment to rise 4.0% in 2021, which is down 0.9 percentage points from last month’s forecast. For 2022, our panel projects fixed investment to increase 3.8%.

Author:, Economist

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Canada PMI Chart

Canada PMI July 2021 0

Note: IHS Markit Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit.

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