S&P Global Canada manufacturing PMI 49.8 vs 48.7 prior

• Prior was 48.7
• Reduction in new orders 'solid'
• According to panel comments, interest rate hikes, and weak macroeconomic conditions led clients to refrain from placing orders
• Firms recorded an accumulation in post-production inventory holdings
• Output sentiment showed rising fear of a recession with the measure at the fifth lowest in the past 10 years

Commenting on the latest survey results, Shreeya Patel, Economist at S&P Global Market Intelligence said:

"The close of the third quarter yielded a mixed bag of results for Canada's manufacturing sector with a backto-back deterioration in operating conditions recorded during September. Output and new orders continued to fall with the sector still feeling the repercussions of material shortages and delivery delays. Demand was once again hit by client hesitancy in the wake of rising interest rates and weak macroeconomic conditions. This led to a third monthly build-up of finished items held at Canadian manufacturing firms; the longest run in over eight years.

"More concerning news came on the sentiment front with firms less optimistic about output levels in the next 12 months. Anecdotal evidence suggested that Canadian companies feared a recession which had led firms to reevaluate their growth projections.

"That said, not all is gloom and doom with latest data also pointing to a slowdown in 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. Both output charge and input price inflation moderated to 22-month lows and were only just above their respective long-run series averages, suggesting tighter monetary policies are having the desired effect on price pressures."