- Prior was 49.0
- Output, new orders and employment all declined
- Lead times posted a record improvement
- Firms commented that market demand was subdued
- Companies noted that new export orders were again down, with some firms noting lower demand from the neighbouring USA
- Confidence in the outlook remained positive
- Backlogs of work declined for an eleventh successive month in June
The anticipated weakness is starting to land. I've heard anecdotal reports of layoffs in manufacturing in Canada and I expect there is more to come.
Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:
“The Canadian manufacturing sector turned in another subdued performance during June, with the headline PMI remaining inside contraction territory, dragged down by further falls in both output and new orders. Reports of subdued market demand, both at home and abroad, were widespread, with clients reportedly hanging back from committing to new business given the uncertain economic outlook.
“Elsewhere in the last report, the record improvement in vendor delivery times is on the one hand welcome news, adding to a sense of prevailing market stability following the disruptions of the pandemic. This has clearly helped to ensure that inflationary pressure remain under broad control. However, with a lack of market demand the principal factor behind the shortening of lead times, its hard to get away from the sense of subdued industrial performance heading into the second half of the year.”
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