Canada PMI Manufacturing dropped from 54.6 to 52.5 in July, hitting the lowest level in more than two years.
Shreeya Patel, Economist at S&P Global Market Intelligence said:
“Latest PMI data revealed another slowdown in operating conditions in Canada’s manufacturing sector with the PMI at its lowest point for just over two years. Behind the latest moderation were contractions in both output and new orders which fell for the first time since the pandemic began in the first half of 2020.
“Firms continue to face sharply rising costs, which have been exacerbated by the war in Ukraine and lockdowns in China. Policymakers have reaffirmed their stance on tackling inflation by raising interest rates by a full percentage point last month.
“Companies in Canada will hope price pressures continue to ease and demand from both international and domestic markets improves. In the meantime, firms remain cautiously optimistic about their 12-month outlook for output.”
