Canada PMI June 2020


Canada: Manufacturing sector deteriorates at a softer pace in June

July 2, 2020

In June, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) increased from 40.6 in May to 47.8. Nevertheless, the index remained below the neutral 50-threshold, signaling a deterioration in manufacturing operating conditions from the previous month.

June’s result reflected softer declines in output, new orders and employment, as lockdown measures eased across most of the country. On the price front, input prices increased notably, which was mainly attributed to a depreciation of the CAD against the greenback. Looking ahead, less than half of the businesses surveyed expected a rise in production volumes over the next 12 months.

Commenting on the print, Tim Moore, economics director at IHS Markit, noted:

“The proportion of survey respondents indicating a monthly drop in production has eased from 66% in April and 47% in May to only 30% during June. This shift in momentum has been driven by a phased reopening of factory operations and the restart of business activity among clients.”

FocusEconomics Consensus Forecast panelists expect fixed investment to decline 10.7% in 2020, which is down 0.6 percentage points from last month’s forecast. For 2021, our panel projects fixed investment to increase 2.8%.

Author:, Economist

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Canada PMI Chart

Canada PMI June 20 20 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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