Canada: Manufacturing PMI falls in June
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell from 49.0 in May to 48.8 in June. As a result, the index moved further below the 50.0 no-change threshold, signaling a faster deterioration in manufacturing sector operating conditions compared to the previous month.
June’s reading reflected decreases in output, new orders, new export orders, purchasing activity and employment. Soft demand caused supply chain pressures to ease, with delivery times improving at a record rate. Moreover, input and output inflation were modest, while business sentiment remained positive.
Paul Smith, economics director at S&P Global Market Intelligence said:
“The record improvement in vendor delivery times is on the one hand welcome news, adding to a sense of prevailing market stability following the disruptions of the pandemic. This has clearly helped to ensure that inflationary pressure remain under broad control. However, with a lack of market demand the principal factor behind the shortening of lead times, it’s hard to get away from the sense of subdued industrial performance heading into the second half of the year.”