Industrial production falling in Canada for 4 months in a row
2022.12.01 10:13
Industrial production falling in Canada for 4 months in a row
Budrigannews.com – According to a report published on Thursday, Canadian industry contracted for four consecutive months in early November because fears that the economy will be in recession are holding back demand for products. However, the rate of decline has slowed and inflation has weakened.
Global With NES: Due to seasonal fluctuations, the Purchasing managers’ index in Canada PMI increased from 48.8 to 49.6 in October.
A value less than 50 indicates a segment collapse. Since August, it has been below the level every month. Paul Smith, Director of Economics at Global Market Intelligence, said in a statement: “Against the background of high inflation indicators and the continued macroeconomic instability in the commodity markets, the November PMI data indicated that working conditions in Canada’s manufacturing remained difficult.”
At the level of 46.8, the components of new purchases decreased during the fifth month due to high inflation, a shortage of products, fears of an economic downturn. Smith noted that the volume of production and new orders continued to fall, although the decline was milder than October, which could be some consolation.”
“In addition, cost inflation continues to rise as the lower price of some goods moves slowly along the supply chain, and some enterprises have increased the number of employees in their enterprises, trying to solve the issue of labor shortages in their factories.”
The raw materials index for two years turned out to be the lowest in the last two years, falling to 60.9 from October 61.7, and the employment indicator fell to 51.1, exceeding 50 percent for the first time in July.
In order to reduce inflation, the Bank of Canada is aggressively raising interest rates. On Wednesday, the Central Bank expects to further tighten its policy decision.
