Canada PMI Manufacturing dropped to 50.4 in December, down from 51.4, hitting a four-month low. Markit noted there was slower output growth amid fall in new orders. Subdued rate of job creation continued. Also, Business optimism dropped to its weakest since February 2016.
Commenting on the PMI data, Tim Moore, Economics Associate Director at IHS Markit said:
“December data revealed a disappointing end to 2019 for the Canadian manufacturing sector as the steady recovery in production volumes stalled, while new orders fell back into decline.
“Weakness in the investment goods category linked to softer capital spending at home and abroad remained a key factor behind the subdued manufacturing trend. Consumer goods producers once again fared better than elsewhere in the industrial sector, but even this outperforming area reported a growth slowdown at the end of 2019.
“It appears that manufacturers are braced for a lack of new work to replace completed projects in the New Year, with business optimism now at its lowest for almost four years and job creation moving closer to stagnation in the latest survey period.”
