Canada December S&P Global manufacturing PMI 49.2 vs 46.9 prior

• Prior was 49.6
• Both output and new orders continue to fall
• Slight rise in employment as firms fill longexisting vacancies
• Prices paid for inputs continued to increase at an elevated rate, and one that was faster than November’s two-year low
• Panellists continued to attribute rising prices to elevated transportation costs, and generally tight supply conditions

This is a decent result at a time when the manufacturing sector is clearly slowing down. Canadian manufacturers should benefit from a weaker currency this year.

Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:

“The Canadian manufacturing economy turned in another relatively subdued performance as 2022 closed, with both production and order books falling since the previous month. Firms reported again that weak market demand reflected both ongoing uncertainty and the negative impact of high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term.

“Indeed, cost pressures turned slightly upward during December, arresting the recent easing trend. With supply constraints persisting, price stickiness remains a concern for companies, who remain on average subdued and concerned about the future.

“More positive was another month of employment growth, as firms sought to fill long-held vacancies, although even here the rate of expansion was marginal amid reports to a reluctance to hire at a time when production and sales continue to fall.”