Canada May S&P Global manufacturing PMI 49.0 vs 50.2 prior

• Prior was 50.2
• Softer new orders and output
• Destocking remained a common theme amongst manufacturers and their clients

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

“A weak underlying demand profile weighed on the Canadian manufacturing sector during May, with production dropping since April and purchasing activity cut. The latter has had some further positive impact on supply chains, and with the challenges related to the pandemic now principally unwound, lead times improved for the first time in nearly four years.

“Better component availability helped to push down on input costs, which were down slightly in May and marking a noticeable turnaround from the elevated increases we’ve seen over the past three years. Whilst there remain some residual output price increases still being recorded in the sector it feels that 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 challenges in manufacturing are now coming to an end.”