- Prior was 52.5
- Input price inflation eases to 19-month low
- "A key reason for the latest decline was a marked and accelerated fall in new orders"
- Backlog of orders declined for the first time in 2 years
- 35% of panellists reported higher costs in August compared to July while only 7% saw them fall
- Firms were widely upbeat about their prospects for output growth over the coming months, but the degree of confidence eased from that seen in July.
Commenting on the latest survey results, Shreeya Patel, Economist at S&P Global Market Intelligence said:
"Latest PMI data highlighted further concern for Canada's manufacturing sector midway through Q3 as high inflation and concerns over the long-term outlook hit demand hard. Both output and new orders fell at quicker rates while employment levels declined for the first time since the start of the pandemic over two years’ ago.
"Firms and consumers alike have adopted a cautious approach to their purchasing habits over the last few months. Growing uncertainty, interest rate hikes, high inflation and persistent supply-chain pressures are no doubt the drivers of the latest drop.
"While on the whole data looks bleak, positives could also be drawn, particularly on the price front where rates of inflation eased significantly in August. Firms will hope this trend continues.
"One thing for certain is testing times are sure to follow. Canadians will only hope that pressures ease sooner rather than later."
The Canadian dollar is fractionally higher after the data but that comes wth some broad US dollar buying and the equity open. The US PMI is due 15 minutes after this release and the ISM data at the top of the hour.