Canada S&P Global manufacturing PMI
- Prior was 47.5
- Input price inflation jumped the most since April
- Confidence in the outlook slipped to its lowest level for nearly three-and-a-half years
- Market conditions were also reported to have worsened in October, and this was the primary factor behind the eighth successive monthly fall in new work
The evidence continues to mount of a slowing Canadian economy and USD/CAD is near a one-year high.
Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:
“It was another disappointing month for the Canadian manufacturing sector, with output and new orders continuing to fall amid reports of underwhelming market demand. Sales to both domestic and international customers were again lower, and firms remain engaged in a cycle of destocking, seeking to cut any excess inventory that built up during the pandemic.
“Perhaps most worrying is the pickup in input price inflation since September, which added to pressure on firms at a time of dwindling demand. Such pipeline pressures only reinforce the potential for interest rates to remain higher for longer, and companies seem aware of this, noting in their survey responses the potential for these factors to lead to an economic recession over the next year.”