- Prior was 51.1
- Best reading since February 2023
- Output growth strongest in 2.5 years
- New orders up at fastest pace in 21 months
- Port strikes and railway disruptions causing delivery delays
Key pressure points:
- Input cost inflation at 18-month high on USD strength
- Export orders down for 15th straight month
- Business optimism dips to lowest since July
Comments from Paul Smith at S&P Global:
"Despite port disruptions leading to both inbound and outbound shipping delays in November, Canada’s manufacturing sector overall enjoyed a decent month, with the sector expanding at its best rate since February 2023. Output and new orders both rose at stronger rates when compared to October, with firms noting an uplift in domestic market activity, linked in part to recent reductions in interest rates. In contrast, subdued global demand continued to weigh on overall sales.
Latest data also revealed stronger price pressures, linked in some instances to recent US dollar strength. However, rates of inflation remained comfortably below trend and broadly contained heading towards year end. As such firms retain a broadly positive outlook and continued to add to their staffing levels in November.
Notably, employment growth continued for third straight month as firms expand production. Backlogs fell again despite shipping bottlenecks at ports.
PMI > 50 signals expansion. Reading consistent with modest manufacturing sector growth heading into year-end.
