S&P Global Canada Manufacturing PMI fell from a seven-month peak of 52.4 in February to 48.6 in March 2023. After two straight months of expansion, the most recent reading revealed a new contraction in the nation’s factory sector that was the steepest since June 2020. The first contractions of the year so far were seen in March, when production and new orders both fell. This decline was attributed to wider macroeconomic uncertainty and the adverse effects of rising prices on consumer buying power. For the fifth consecutive month, more employees were hired, and stockpiles rose despite comparatively fewer component shortages. On the price front, manufacturers still had to contend with increasing costs, but the rate of input inflation kept going downhill, declining to its lowest level since July 2020 and staying below the long-term survey average. Following this, businesses raised their product prices at their lowest rate since October 2020. Lastly, with expectations of an economic recovery, confidence in the future increased.
Source: Trading Economics
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