Canada PMI
- Prior was 49.6
- Fourth month below 50
- Lowest since June 2020
- Fifth straight decline in new orders; lowest since March
- Full report
Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:
“Canada’s manufacturing sector continued to struggle during August, with output and new orders falling at solid rates. Firms responded by cutting purchasing and utilising existing inventories, and signalled some worries over the potential for demand weakness to linger in the months ahead.
“Despite further signs of product supply stability and a further drop in demand for inputs, inflationary pressures picked up as firms throughout the supply chain continued to push higher operating expenses onto their clients.
“Such persistence in inflation, albeit at much lower levels than typically seen since the onset of the pandemic, will naturally be a concern for policymakers. However, such worries are somewhat offset by the news that job shedding continued in August – and to the greatest degree since June 2020. This latest sign of weakness in the labour market may well therefore be enough for the Bank of Canada to take a pause in its monetary policy tightening cycle."
A recession is going to come quick and hit hard in Canada. Home prices are falling now.