The IHS Markit Canada Manufacturing PMI dropped to 50.4 in December 2019 from 51.4 in the previous month and below market expectations of 51.9. It was the lowest reading since August, as production volumes increased fractionally while new business declined, with firms noting subdued demand across the automotive and energy sectors. Also, exports fell amid difficulties winning new work in US markets while an improvement in demand from China was recorded. Employment levels increased at the weakest pace for four months due to cost cutting and concerns about the demand outlook. Lastly, business confidence was the weakest since February 2016.

Manufacturing PMI in Canada averaged 52.64 points from 2011 until 2019, reaching an all time high of 57.10 points in June of 2018 and a record low of 47.50 points in December of 2015. 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. source: Markit Economics

Manufacturing PMI in Canada is expected to be 52.30 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Canada to stand at 52.50 in 12 months time. In the long-term, the Canada Manufacturing PMI is projected to trend around 52.00 points in 2020, according to our econometric models.

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Canada Manufacturing PMI

Actual Previous Highest Lowest Dates Unit Frequency
50.40 51.40 57.10 47.50 2011 - 2019 points Monthly

News Stream
Canada Factory Activity Grows The Most in 9 Months
The IHS Markit Canada Manufacturing PMI increased to 51.4 in November 2019 from 51.2 in the previous month, but below market expectations of 52.6. The latest reading pointed to the sharpest expansion in factory activity since February, as output advanced at the fastest pace in nine months amid strong domestic demand; and the job rate rose slightly. Meanwhile, new orders slowed as export sales declined to the largest extent since July. Stocks of finished goods were trimmed to the steepest rate in seven months, as rail strikes contributed to supply chain disruption. On the price front, input price inflation accelerated to a seven-month high; and output cost inflation advanced to a six-month high. Finally, sentiment weakened to its lowest level since February 2016.

Canada Factory Activity Growth at 8-Month High
The IHS Markit Canada Manufacturing PMI rose to 51.2 in October 2019 from 51.0 in the previous month. The latest reading pointed to the sharpest expansion in factory activity since February, as production expanded the most for eight months and new orders increased for the second month running. On the other hand, new export orders fell again in October amid intense competitive pressures; and the rate of job creation softened. On the price front, input cost inflation accelerated from the seven-year low seen during September while output costs increased only slightly, as subdued business conditions had held back their pricing power. Looking ahead, sentiment picked up to its highest since July on the back of new product launches and hopes of an improvement in global trade conditions.

Canada Factory Activity Back to Expansion: Markit
The IHS Markit Canada Manufacturing PMI rose to 51 in September 2019 from 49.1 in the previous month. The latest reading pointed to the sharpest expansion in factory activity since February, as output increased for the first time in six months and new orders advanced slightly after declining for six consecutive months. Also, new export business rose and the rate of job creation accelerated to a 7-month high. Meantime, backlogs of work continued to fall, albeit at a slower pace. Input buying dropped, but stocks of purchases rose due efforts to restock. In addition, input delivery times faced by manufacturers lengthened amid shortages of certain materials at suppliers and transport issues. On the price front, input cost inflation eased for the third straight month and was the softest in the current period of rising input prices which began more than seven years ago, mainly due to cost of steel. Finally, sentiment improved boosted by plans to expand operations and new orders expectations.

Canada Factory Activity Back to Contraction: Markit
The IHS Markit Canada Manufacturing PMI fell to 49.1 in August 2019 from 50.2 in the previous month. The latest reading pointed to a contraction in factory activity, as new orders dropped for the sixth consecutive month and at the steepest pace since December 2015. In addition, export orders declined mostly due to softer economic growth in the US and worsening automotive sector business conditions. Also, the job creation rate slowed due to less upbeat growth expectations and lower levels of purchasing activity have been recorded in five of the past six months, reflecting falling production and efforts to streamline inventories. On the price front, input cost inflation eased to an over seven-year low mainly due to raw materials prices in particular steel and output cost inflation rose at the slowest rate since October 2016. Finally, optimism weakened to a three-and-a-half year low amid worries regarding US-China trade war and global economic uncertainty.

Canada Manufacturing Activity Returns to Growth
The IHS Markit Canada Manufacturing PMI increased to 50.2 in July of 2019 from 49.2 in the previous month, pointing to the first expansion since March. Output fell at a much softer pace, with new orders closer to stabilization in July while pre-production inventories increased for the first time in six months. Additionally, employment rose at the fastest pace in five months. Meanwhile, new work decreased, dragged down by a weak export demand while backlogs continued to decline in July. On the price front, input cost inflation increased at the slowest pace since May 2013 while output charge also eased amid softer cost pressures and intense competition for new work. Looking ahead, manufacturers signalled a rebound in business optimism, mainly due to additional staff recruitment to long-term business expansion plans and a rise in optimism about the demand outlook.

Canada Factory Activity Contracts for 3rd Month
The IHS Markit Canada Manufacturing PMI rose slightly to 49.2 in June 2019 from 49.1 in the prior month and above market expectations of 49.0. Still, the reading pointed to the third consecutive month of contraction in factory activity and the sharpest since December 2015. The downturn in output accelerated and was the largest since December 2015 while the decline in new orders was only modest and slower than in May. Meantime, export orders were broadly unchanged, after three straight months of falls, amid some boost from the removal of US trade tariffs on steel and aluminium. Also, employment rose for the second month running, though marginally. On the price front, input price inflation held close to the 52-month low seen in May, amid weaker demand for materials and lower steel prices. Output charges, in turn, rose the least since October 2016. Looking ahead, business optimism dropped, partly due to concerns over global trade frictions on manufacturing sector performance.

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.

Canada Business Last Previous Highest Lowest Unit
Business Confidence 51.90 60.00 75.00 36.10 points [+]
Manufacturing PMI 50.40 51.40 57.10 47.50 points [+]
Industrial Production -1.87 -2.20 10.26 -14.52 percent [+]
Industrial Production Mom -0.11 0.21 3.33 -3.50 percent [+]
Manufacturing Production -0.65 -0.12 11.77 -17.31 percent [+]
Capacity Utilization 81.70 83.30 87.30 72.70 percent [+]
New Orders 57093927.00 55620451.00 63214073.00 14816411.00 CAD THO [+]
Changes in Inventories 4201.00 12754.00 24844.00 -21563.00 CAD Million [+]
Bankruptcies 218.00 218.00 872.00 177.00 Companies [+]
Corporate Profits 91041.00 90428.00 97553.00 -758.00 CAD Million [+]
Car Registrations 146259.00 163201.00 220436.00 19807.00 Units [+]
Leading Economic Index -0.10 0.10 1.20 -1.40 percent [+]
Internet Speed 16205.66 14855.09 16205.66 3293.95 KBps [+]
IP Addresses 15582991.00 15135509.00 15582991.00 8092964.00 IP [+]
Steel Production 985.00 1115.00 1534.00 349.00 Thousand Tonnes [+]
Wholesale Sales -1.20 -1.20 6.90 -5.30 percent [+]
Mining Production -6.15 -7.39 23.38 -16.41 percent [+]
Manufacturing Sales -0.60 -0.20 6.60 -9.20 percent [+]
Competitiveness Index 79.59 79.92 80.00 5.20 Points [+]
Competitiveness Rank 14.00 12.00 15.00 9.00 [+]
Corruption Index 77.00 81.00 92.00 77.00 Points [+]
Corruption Rank 12.00 9.00 14.00 5.00 [+]
Crude Oil Rigs 135.00 136.00 715.00 32.00 [+]
Ease of Doing Business 23.00 22.00 23.00 8.00 [+]