Canada’s Industrial indicators fell to 7-year low
2023.01.03 09:58
Canada’s Industrial indicators fell to 7-year low
Budrigannews.com – According to data released on Tuesday, Canadian manufacturing activity decreased in December at a slightly faster rate as a result of an uncertain economic outlook, high inflation, and a reversal in the recent trend of easing cost pressures.
The Global S&P (NYSE:) The seasonally adjusted Canada Manufacturing Purchasing Managers’ Index (PMI) decreased from 49.6 in November to 49.2 in December.
It was the fifth consecutive month that the file was underneath the 50 limit that marks withdrawal in the area. According to S&P Global, that is the longest downward trend since a seven-month period in August 2015 and February 2016.
Paul Smith, the economics director at S&P Global Market Intelligence, stated in a statement, “The Canadian manufacturing economy turned in another relatively subdued performance as 2022 closed.”
“Firms reported once more that weak market demand reflected both ongoing uncertainty and high inflation’s negative impact,”
The measure of new orders only slightly increased to 47.0 from 46.8, while the output index dropped to a four-month low of 47.1 from 49.0 in November.
As businesses attempted to reduce existing inventory, purchasing activity was at its lowest level since June 2020. Nevertheless, the average lead times for input delivery continued to decline.
Smith stated, “Price stickiness remains a concern for businesses with supply constraints persisting.”
The input price index increased in December, rising from 60.9 in the previous month to 61.5, after having been lower for the previous five months. Output price measures also increased.
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