S&P: Canada’s manufacturing sector sees softening performance last month
(MENAFN) According to a report from S&P Global released on Tuesday, Canada's manufacturing sector experienced a softening performance in June. The data indicated declines in both output and new orders, coupled with a slight reduction in employment levels, marking the first decrease in net staffing since January.
Purchasing activity among Canadian manufacturers also decreased notably, while there was an unexpected rise in inventory levels. Confidence in future business conditions was reported to be at its lowest point of the year so far, reflecting cautious sentiment among industry participants.
The Manufacturing Purchasing Managers' Index (PMI) for Canada remained unchanged at 49.3 in June, marking the 14th consecutive month below the neutral level of 50. A PMI reading below 50 indicates contraction, while a reading above 50 signals expansion. Market expectations had anticipated a slight improvement to 50.2 for June, highlighting the sector's persistent challenges.
Paul Smith, Economics Director at S&P Global Market Intelligence, commented on the subdued performance of Canada's manufacturing economy. He noted that declines were observed across various metrics including output, new orders, employment, and purchasing activity compared to the previous month.
Despite these challenges, Smith pointed out a positive aspect from the survey: price pressures within the sector appeared to be under control. Costs rose at a slower pace than in recent months, and charges increased only modestly, suggesting some stability in cost dynamics amid broader economic uncertainties.
The latest data underscores ongoing economic challenges facing Canada's manufacturing sector, influenced by both domestic factors and global economic trends. As the sector navigates these pressures, attention remains focused on future indicators and economic policies that could impact industry recovery and growth prospects.
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