Canada: Manufacturing PMI ticks down slightly in November
In November, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) dipped to 57.2 from October’s 57.7. Consequently, the index remained above the neutral 50-threshold, but signaling a marginally weaker improvement in manufacturing operating conditions from the previous month.
In November, the PMI suggested momentum in manufacturing sector activity moderated modestly from the previous month due to a slightly softer expansion in new orders, while the increase in output rose at the strongest pace in three months. Moreover, supplier delivery times increased due to supply chain disruptions and shortages of goods. 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:
“Overall, Canada’s manufacturing sector performed well in November. Growth has certainly been hindered by transportation bottlenecks, material scarcity and intense cost pressures, but firms remain confident that such issues will subside in 2022.”