The S&P Global Canada Manufacturing PMI fell to 49 in May of 2023, slipping into the contractionary territory following the near stagnation of 50.2 in the previous month. Manufacturers reported another month of decline in new orders, pressured by elevated borrowing costs from the Canadian central bank while the high-inflation environment squeezed clients’ budgets. The persistently low demand levels meant that firms have been depending on backlogs of work to support production, but recent clearance in the latter resulted in a fresh contraction for Canadian manufacturing output. Furthermore, companies reduced purchasing levels for a tenth consecutive month and cut jobs for the first month in seven. On the price front, improved supply chains and a pullback in commodity prices drove input costs to fall for the first time in 11 years. source: Markit Economics

Manufacturing PMI in Canada averaged 52.74 points from 2011 until 2023, reaching an all time high of 58.90 points in March of 2022 and a record low of 33.00 points in April of 2020. This page provides the latest reported value for - Canada Manufacturing PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Canada Manufacturing PMI - data, historical chart, forecasts and calendar of releases - was last updated on June of 2023.

Manufacturing PMI in Canada is expected to be 49.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Manufacturing PMI is projected to trend around 55.00 points in 2024, according to our econometric models.

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Canada Manufacturing PMI



Related Last Previous Unit Reference
Manufacturing PMI 49.00 50.20 points May 2023

Canada Manufacturing PMI
The IHS Markit Canada Manufacturing Purchasing Managers’ Index™ measures the performance of the manufacturing sector. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.
Actual Previous Highest Lowest Dates Unit Frequency
49.00 50.20 58.90 33.00 2011 - 2023 points Monthly
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News Stream
Canadian Manufacturing Activity Contracts in May
The S&P Global Canada Manufacturing PMI fell to 49 in May of 2023, slipping into the contractionary territory following the near stagnation of 50.2 in the previous month. Manufacturers reported another month of decline in new orders, pressured by elevated borrowing costs from the Canadian central bank while the high-inflation environment squeezed clients’ budgets. The persistently low demand levels meant that firms have been depending on backlogs of work to support production, but recent clearance in the latter resulted in a fresh contraction for Canadian manufacturing output. Furthermore, companies reduced purchasing levels for a tenth consecutive month and cut jobs for the first month in seven. On the price front, improved supply chains and a pullback in commodity prices drove input costs to fall for the first time in 11 years.
2023-06-01
Canadian Factory Activity Grows Slightly in April
The S&P Global Manufacturing PMI rose to 50.2 in April of 2023, rebounding from a near three-year low of 48.6 in the previous month. The reading pointed to a marginal expansion in the manufacturing sector as a sizable growth was reported for staffing levels, capacity capabilities, and stability in labor provision. Still, the period marked a firm decline in new orders amid client hesitancy due to inflation and high borrowing costs, driving firms to solely depend on the clearance of backlogs to support growth. On the price front, input price inflation rose to its highest level so far this year, as increasing transportation and labor costs offset benefits from more stable supply chains. Still, low demand and soft sales pressured output charge inflation to its lowest in three years. Looking forward, confidence edged lower during the period.
2023-05-01
Canada Manufacturing Back into Contraction
The S&P Global Canada Manufacturing PMI dropped to 48.6 in March 2023 from a seven-month high of 52.4 in February. The latest reading indicated a renewed contraction in the country's factory sector that was the steepest since June 2020 after two consecutive months of expansion. Both output and new orders declined in March, the first contractions of the year so far, attributed to broader macroeconomic uncertainty, and the negative impact of rising prices on client purchasing power. Meanwhile, more staff was added for a fifth successive month and inventories increased on relatively fewer component shortages. On the price front, manufacturers continued to face rising costs, but the rate of input inflation maintained the downward trend, dropping to its lowest since July 2020 and remaining below the long-run survey average. Subsequently, firms increased their output prices to the slowest degree since October 2020. Lastly, confidence in the future improved amid hopes of economic recovery.
2023-04-03