This is 15 straight months of contraction.
- Prior was 49.3
- Canadian manufacturing sector deteriorates at fastest pace in 7 months
- Business confidence hits lowest level since May 2020
- Input cost inflation remains solid but below trend
- Supply chain delays worsen, especially for sea freight
- New orders fell sharply, with exports down the most since May 2020
Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:
“The latest manufacturing data disappointed in July, with accelerated declines in both output and new orders both recorded as we enter the second half of 2024. Panellists were subsequently circumspect in their purchasing and input inventory management by adjusting these both downwards to reflect the weaker and uncertain operating environment.
“Although employment growth was sustained, this was on the back of what looks like dwindling hopes for future output growth. Confidence about next year’s output may remain positive, but sentiment is at its lowest level since May 2020. It seems that the Bank of Canada’s recently announced second cut in interest rates could not have come soon enough as firms look to lower borrowing costs and reduced inflation to help reinvigorate demand in the coming months.”