Canada: Manufacturing PMI worsens in August
September 3, 2019
In August, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 49.1 from 50.2 in July. The index thus dipped below the 50-threshold, signaling a deterioration in manufacturing operating conditions.
August’s slip reflected a sharper decline in new orders, while output also dropped off. Moreover, employment levels increased at a slower pace. On the price front, both input and output prices increased at slower rates in August than in July.
Commenting on August’s print, Tom Moore, economics associate director at IHS Market, noted:
“August data also signalled a slide in growth projections across the manufacturing sector, with business optimism falling to its lowest level since early-2016. Concerns about the US-China trade war and rising global economic uncertainty were often cited by survey respondents."
Author: Steven Burke, Economist