Manufacturing sector in Canada shows first expansion in more than 1 year
Date
11/3/2024 7:22:45 AM
(MENAFN) In October, Canada’s manufacturing sector demonstrated a notable expansion, with S&P Global reporting a significant uptick in activity, driven primarily by the first increase in output observed in over a year. The report highlighted that this growth was underpinned by a steady improvement in market demand, leading to a slight rise in new business and prompting firms to increase their workforce to meet the growing needs.
Inflationary pressures within the sector showed signs of easing, as the pace of cost increases slowed and output charges experienced only a marginal rise during the month. The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) reflected this positive trend, registering at 51.1 for October, an increase from 50.4 in September and marking the highest level in 20 months. This figure remains above the critical neutral threshold of 50, indicating continued growth in the manufacturing landscape.
Economics director at S&P Global Market Intelligence, Paul Smith, described October as a relatively positive month for the Canadian manufacturing economy, noting that significant gains in both output and employment were standout features of the latest survey data. This growth suggests a rebound in confidence among manufacturers, as they bolster production in anticipation of further growth in the coming months.
Additionally, the report indicated that firms were proactively increasing their warehouse inventories, preparing for expected order gains in the near future. This forward-looking approach reflects a cautious optimism within the manufacturing sector, as businesses position themselves to capitalize on the improving market conditions.
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