Canada Manufacturing PMI

Last Release

Mar 31, 2024

Actual

49.8

Units In

Points

49.7

Frequency

Monthly

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
58.9 Mar 2022	33 Apr 2020	52.46 Points	2011-2024	Markit Economics

The IHS Markit Canada Manufacturing Purchasing Managers’ Index™ measures the performance of the manufacturing sector. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Latest Updates

The S&P Global Canada Manufacturing PMI edged 0.1 point higher from the previous month to 49.8 in March of 2024, pointing to the eleventh consecutive contraction in the Canadian factory activity, albeit the slowest decrease in the current sequence. New orders dropped at the slightest pace in 13 months, with firms citing client hesitancy against the backdrop of elevated prices and high borrowing costs. Consequently, factory output also recorded a slight drawback, magnified by the choice to meet orders directly out of warehouse inventory instead of new output. On the price front, issues with supply chains supported input prices to continue to increase, although output charges rose to a lesser extent. Looking forward, business optimism remained below trend but showed significant improvement from earlier in the year, supported by hopes of better economic conditions. This, in turn, drove companies to increase their headcounts to undercut the prospect of higher capacity demand.